DGH rejects Reliance Industries' proposal to do single test in 3 discoveries
A block oversight committee headed by DGH, however, disassociated D-29, 30 and 31 and approved only D-34 with 1.267 tcf of reserves. D-34 alone can produce 14.68 mmscmd of gas from 11 wells for eight years on an investment of USD 2.338 billion.
Sources said RIL-BP believes the three discoveries have resources of around 350 billion cubic feet which has the potential to add 5-7 million standard cubic meters per day (mmscmd) to the KG-D6 production in four-five years.
DGH said RIL's proposal to undertake DST in one discovery well was acceptable with the condition that a successful test would lead to drilling of development wells in that particular reservoir only.
Output from KG-D6 has fallen to 23 mmscmd after hitting a peak of 62-63 mmscmd in August 2010 and the satellite finds are crucial in plans of RIL-BP to reverse the trend.
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