Reliance Industries' KG-D6 fields may see production drop to an all-time low of about 27 million cubic meters a day by April/May due to the entry of sand or water in the wells, a top oil ministry official said today.
"They (RIL) have told DGH that production is likely to fall to 27 mmcmd (from current 34.5 mmcmd) next fiscal... May be around April or May," the official told reporters here.
This will be the lowest production level since RIL began output from KG-DWN-98/3 or KG-D6 block in April 2009.
Dhirubhai-1 and 3 (D1&D3) gas fields in KG-D6 block and MA oilfield in the same area produced about 30 mmcmd on debut and reached 61.5 mmcmd in March 2010 before water and sand ingress gradually brought down the output.
Today, D1&D3 are producing about 27.5 mmcmd and MA another 7 mmcmd.
The official said the output from KG-D6 is short of the 70.39 mmcmd (61.88 mmcmd from D1&D3 and 8.5 mmcmd from MA field) level envisaged by now as per the field development plan approved in 2006. Production was to touch 80 mmcmd by April, 2012 after all the 31 wells envisaged in the development plan are drilled and brought to production.
RIL has so far drilled 22 wells on Dhirubhai-1 and 3, two of the 18 gas finds in the KG-D6 block that have been brought to production, but only 18 were put-on production. Of these 18, five have ceased due to water/sand ingress.
MA oilfield in the same block had seen one out of the five wells cease due to the same reasons.
RIL is the operator of the 7,645-sq-km D6 block with 60% stake while London-based BP plc has 30% interest. The remaining is with Niko Resources of Canada.
Niko had last week warned that KG-D6 fields may see a further decline in output until new wells are brought to production.
The Canadian firm said its share of D6 gas production in December averaged approximately 137 million cubic feet per day mmcfd (38.79 mmcmd for the entire block).
"Declines are expected to continue until work overs are completed and/or additional wells are tied in," it said adding RIL was to do workovers or maintenance of the six closed wells which may raise the output.
Niko said plans were approved for the development of the first four satellite discoveries around D1&D3. "In addition, further development is expected at D6 when the "R complex" field and three additional satellite discoveries are added."
These fields can add up to 30 mmcmd to the output.
