Reliance Industries' (RIL) MA oilfield in the predominantly gas-rich KG-D6 block will hit peak output by this year-end, even as plans are underway to put nine more gas discoveries in the area into production, its Chairman Mukesh Ambani said today.
MA oilfield in KG-DWN-98/3, or D6 block in Krishna Godavari basin, started oil production in September last year and is currently producing between 10,500 and 11,000 barrels of oil per day from three wells. Three more wells are to be added to more than double the output.
"Oil production from the D26 (MA) field has (been) 2.8 million barrels (since production started) with daily peak production expected by the end of the year," he told company shareholders.
Bad weather has delayed an increase in production at MA field as Reliance has not been able to hook up well MA-6H to the production system. MA-6H was completed in mid-August and is expected to add between 6,000 bpd and 8,000 bpd to existing oil production from three MA wells. A fifth well is currently being drilled that would produce between 3,000 bpd and 4,000 bpd and a sixth well is planned later this month.
Ambani said Reliance was working on developing nine gas fields around the giant Dhirubhai 1 and 3 (D-1 and D-3) gas discoveries which are currently producing around 45 million standard cubic meters per day (mmscmd) or 40 per cent of India's total gas output.
"Initial field development planning for accelerated monetisation of nine more gas discoveries in this block is underway," Ambani said.
The discoveries would help extend the plateau production of 80 mmscmd from D6. D-1 and D-3 field have a peak life of 8 years.
Reliance had in July last year submitted a plan of investing $5.91 billion in developing the 9 satellite discoveries. This investment is besides the $8.836 billion earmarked for D-1 and D-3. For MA oilfield, the company is investing another $2.234 billion.
The company has till date made 18 gas and one oil discovery in KG-D-6 block. Of these D-1 and D-3 gas finds are producing and plans are afloat for nine others.
According to the gas production profile it submitted to the oil regulator DGH, output from D-1 and D-3 is to rise to 60 mmscmd by year end. "The field is slated for plateau production by the second half of the year 2010," Ambani said.
In all 18 wells on D-1 and D-3 have been completed so far and 17 wells commissioned. However, only 11 wells are currently producing gas with restricted flow rates per well because of delays on government part in naming customers.
D-1 and D-3 have a combined peak capacity of about 5,50,000 barrels of oil equivalent per day.
"At current prices of crude oil of USD 80 per barrel, they imply a saving of $11 billion (about Rs 53,000 crore) per year in energy imports by India," he said.
