Reliance plans shut oil gas fields in KG-D6 block
X
Waste Management Expo 2020 MAR 12&13 BIEC, Bengaluru, India

Reliance plans to shut oil and gas fields in KG-D6 block

7:32 AM, 30th April 2018
Krishna Godavari Dhirubhai 6 block, India. (File photo)
Krishna Godavari Dhirubhai 6 block, India. (File photo)

NEW DELHI, INDIA: Reliance Industries Limited (RIL) plans to shut oil and gas production at its main fields in KG-D6 block in the coming months. And begin complying with the government’s guidelines for decommissioning facilities in the Bay of Bengal block where output has hit its lowest ever.

RIL had till date made 19 oil and gas discoveries in the Krishna Godavari basin. Of these, MA—the only oil discovery in the block—began production in September 2008. Dhirubhai-1 and 3 (D1 and D3) fields went onstream in April 2009.

While the company did not provide any timelines for decommissioning and stopping of production at the fields that have witnessed output drop to a fourth of peak, sources privy to the development said MA field may be shut as early as October after the current lease of a floating production storage and offloading (FPSO) unit, which processes output from the field, expires.

E-mails sent to RIL and its partner BP Plc of UK, which holds 30 percent stake, for comments remained unanswered. The government’s site restoration guidelines provide for a one-year notice for decommissioning of facilities.

“Adhering to Site Restoration Guidelines issued by Government of India, RIL submitted Bank Guarantee for Decommissioning activity for existing producing fields (D1D3 and MA),” the company said in an investor presentation.

In the presentation, RIL said, “average production of gas (from KG-D6 block in January-March 2018) was 4.3 million standard cubic metres per day and oil and condensate was at 1,865 barrels per day.” The gas output, which was lower than 4.9 mmscmd in the October-December quarter of 2017, was made up of output from D1 and D3 and MA fields. It said this was due to “continuing natural decline” at the fields.

RIL had in the field development plan for D1 and D3 proposed a capital expenditure of $8.836 billion. For developing Dhirubhai-26 or MA oilfield, it had in 2006 proposed to invest $2.234 billion, which was scaled down to $1.96 billion in 2012. The fields were in the investment plans supposed to last a minimum 15 years but have extinguished in less than a decade.

KG-D6 fields had hit a peak of 69.43 mmscmd in March 2010 before water and sand ingress shut down wells. This peak output comprised 66.35 mmscmd from D1 and D3, the largest of the gas discoveries on the KG-D6 block, and 3.07 mmscmd from MA field.

Besides the fall in output from D1 and D3, gas production from MA field, which had hit a peak of 6.78 mmscmd in January 2012, too has dropped. RIL in the presentation said it is now developing three sets of discoveries—R-Cluster, Satellite Cluster and MJ fields in KG-D6 block at a cost of Rs 40,000 crore. These fields together would bring 30-35 mmscmd of peak output. Initial gas will begin flowing from 2020. “R-Cluster development activities commenced; drilling to commence by 2Q FY19,” it said.

© Press Trust of India

0 Comments

Login

Your Comments (Up to 2000 characters)
Please respect our community and the integrity of its participants. WOC reserves the right to moderate and approve your comment.

Related News


M&A in chemical industry will continue to rise – Report

NEW YORK, US: An abundant appetite for industrials & chemicals (I&C) deals have seen mergers and acquisitions (M&A) across the sector scal ...

Read more
Fluor, JGC joint venture bags LNG Canada project

IRVING, US: Fluor Corporation (FLR) and JGC Corporation said that their joint venture has been awarded an engineering, procurement and constructi ...

Read more
Arlanxeo increases prices for elastomer grades globally

MAASTRICHT, NETHERLANDS: Arlanxeo increases its prices for Buna and X_Butyl products globally effective 1 May 2018. The price increase is driven by t ...

Read more
ExxonMobil to buy Indonesia’s largest lubricant manufacturer

IRVING, US: ExxonMobil Corporation has agreed to purchase PT Federal Karyatama (FKT), one of Indonesia’s largest manufacturers and marketers of ...

Read more
EuroChem appoints current COO as next chief executive

ZUG, SWITZERLAND: EuroChem Group AG has appointed of Dmitry Strashnov as its chief executive officer, effective 1 July 2018. Strashnov succeeds EuroC ...

Read more
Fire breaks at Privi aromatic chemicals unit near Mumbai

MUMBAI, INDIA: A major fire broke out after a blast at a chemicals factory in adjoining Raigad district, a senior official&nb ...

Read more
www.worldofchemicals.com uses cookies to ensure that we give you the best experience on our website. By using this site, you agree to our Privacy Policy and our Terms of Use. X