It is almost back to square one for Mukesh Ambani-owned Reliance Industries Ltd. (RIL). Production from the KG Basin D-6 gas fields went down to 40 million metric standard cubic metres a day (mmscmd), the same output when it had resumed production way back in 2009.
In a status report filed by the company with the Petroleum and Natural Gas Ministry, it has stated that the Dhirubhai 1 and 3 (D1 and D3), the first two of the 18 gas discoveries in the KG basin KG-DWN-98/3 that have been put on production and the MA oilfield in the same area, produced 40.35 mmscmd in the last week of November.
According to figures provided by the company, the output in the week ending November 27 comprised 33.47 mmscmd from D1 and D3 gas fields and 6.88 mmscmd from the MA oil field. The KG-D6 production is lower than the 61.5 mmscmd achieved in March, 2010, as the drop in pressure in the wells and increased water ingress led to lower per-well gas out.
Out of the 18 wells drilled, completed and put on production on D1&D3, four wells — A2, B1, B2 and B13 — had to be closed due to high water cut/sanding issues. The output from KG-D6 is short of the 70.39 mmscmd envisaged for the present day as per the field development plan approved in 2006. The MA oilfield now produces about 12,624 barrels of crude oil a day. The report says that 14.47 mmscmd of gas output is being sold to fertilizer plants and 22.86 mmscmd to power units.
The remaining 3.02 mmscmd is consumed by other sectors, including by the East-West pipeline that transports gas from the East Coast to consumption centres in the West. RIL projected an output of 40 mmscmd of gas in December. As per the status report, out of the 22 wells planned in Phase-I of D1 and D3 field development, 18 wells have been drilled and completed so far.