1. Fresh drilling at KG-D6 shows positive results

Fresh drilling at KG-D6 shows positive results

KG-D6 fields started production in April 2009. The current production of 11 mms-cmd is a far cry from the peak of over 69

By: | New Delhi | Published: September 1, 2015 12:42 AM

Reliance Industries (RIL) and its foreign partners BP and Niko Resources have registered positive results in fresh drilling that started in May at the D1 and D3 fields in the KG-D6 block.

According to sources, the newly drilled well has shown gas production to the tune of 0.56 million metric standard cubic metre per day (mmscmd). Currently, the production at the KG-D6 block is hovering around a dismal 11 mmscmd, which includes around 4-5 mmscmd from MA (smaller) fields and remaining from D1 and D3 fields.

Considering the good results of what is called “sidetrack drilling” in D1-D3, the explorers are now planning to replicate the same in MA fields of the same block, said an official privy to the development.

Sidetrack drilling is done to raise production from a producing block to extract reserves not possible by regular drilling.

“The order for equipment and material required for sidetrack drilling in MA field has been placed. It would take 12-13 months for them to arrive. The drilling in MA field could begin next year,” the official explained.

On May 18, FE reported that RIL, together with its partners had begun a 65-day drilling programme costing about $60. A rig was deployed costing $395,000 per day. The explorers’ effort is to maintain the current optimal production and work out modalities to ramp up the output gradually.

The petroleum ministry and directorate general of hydrocarbons (DGH) have been informed about the recent efforts being undertaken by RIL, BP and Niko for raising output from the block. “There are several works going on in KGD6 and this is why the production levels have been stagnant for a while. Without these activities, the output would have fallen further down,” a senior petroleum ministry official told FE.

Meanwhile, RIL and its two foreign partners have started carrying out the drill stem test (DST) on D-29 discovery in the same block. The move comes in the wake of the Cabinet Committee on Economic Affairs decision on April 29 that gave the explorers, including RIL and ONGC, to do the DSTs for some discoveries, which they did not, do the requisite test earlier. “Gas has flown to the survey, as the requisite of the DST,” said the first official.

After commissioning two booster compressor pumps, RIL is trying to revive some wells to maintain the current production levels. In addition, after the completion of appraisal wells in MJ-1, reservoir modelling and engineering are under progress, say analysts.

The KG-D6 fields started production in April 2009. The current production of 11 mmscmd is a far cry from the peak of over 69 mmscmd achieved in early 2010. During April-June 2015, RIL’s revenues from oil and gas segment dropped by 35.3% year-on-year to Rs2,057 crore against Rs3,178 crore in the same months the previous year. KGD6 field produced 0.44 million barrels of crude oil, 0.08 million barrels of condensate and 37 billion cubic feet of natural gas in Q1 of FY16, a reduction of 16%, 6% and 13% respectively on a y-o-y basis.

RIL, in a recent presentation to investors, said it had commissioned two onshore terminal booster compressor units (OTBC) in the fourth quarter of FY15.

These are expected to extend the life of the wells/recovery from the wells and offers opportunity to revive ceased wells that were shut in due to high water influx.

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