RIL's KG-D6 gas output hits all time low as it shuts six wells

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Reliance Industries' largest gas fields in its flagging KG-D6 block have hit an all-time low production of about 28 million standard cubic meters per day as the firm shut six wells due to water and sand ingress.

Dhirubhai-1 and 3 gas fields in the eastern offshore KG-DWN-98/3 or KG-D6 block, which started production in April 2009 at the rate of 30 mmscmd, saw output plummet to 28.16 mmscmd in the week ending March 4, according to a status report filed by the company with the Oil Ministry here.

Together with 6.46 mmscmd of gas production from MA oil field in the same area, KG-D6 block output in the February 27 to March 4 averaged 34.62 mmscmd.

The KG-D6 production is lower than 61.5 mmscmd rate achieved in March, 2010, as a drop in pressure in the wells and increased water ingress has led to a lower per-well gas output.

The report said that of the 18 wells drilled, completed and put on production in the D1 and D3 fields, six wells had to be shut or closed due to high water cut/sanding issues.

The output from KG-D6 is short of the 70.39 mmscmd-level (61.88 mmscmd from D1 and D3 and 8.5 mmscmd from the MA field) envisaged by now as per the field development plan approved in 2006

While Reliance holds 60 per cent interest in KG-D6, UK's BP Plc holds 30 per cent and Niko Resources of Canada the remaining 10 per cent.

The MA oilfield currently produces about 11,335 barrels of crude oil per day. In addition, 1,680 barrels of condensate are produced from the field every day.

The report said 14.80 mmscmd of the gas output is being sold to fertiliser plants and 16.62 mmscmd to power plants.

The remaining 3.20 mmscmd is consumed by other sectors, including those fed by the East-West pipeline that transports gas from the East Coast to consumption centres in the West.

RIL projected output of 34.5 mmscmd of gas during March.