Reliance Industries Limited (RIL) plans to ramp up gas production from its D6 block in the KG basin from 80 mmscmd to around 120 mmscmd by 2014.
RIL has already announced plans to start pumping in 80 mmscmd of gas from 2010. RILís president and CEO (oil and Gas) PM S Prasad told FE that the company has submitted development plans to the government for eight more gas discoveries in its prolific D6 block in the KG basin. ďOnce these plans are approved by the government, we will start with the development of these wells also. These additional eight discoveries will be producing around 25 mmscmd of gas. Then, we will also be producing another 9-10 mmscmd gas from the MA oil field in the same D6 block. This will take the total gas production to 115 mmscmd by 2013-14, if everything goes well,Ē Prasad said.
Under the development plan approved by the government for the D6 block, Reliance will invest $5.2 billion in the phase I to develop Dhirubhai-1 and 3 discoveries. The initial rate of gas production from the two fields will be 15-20 mmscmd gas, the production of which is likely to begin by the first quarter of 2009. The gas production will be ramped up to 40 mmscmd by mid-2009 and to 80 mmscmd by 2010. The capacity of the Kakinada terminal, the landfall point for RILís gas, has been designed to handle the increased gas flow from 80 mmscmd in the next 2-3 years to 120 mmscmd by 2013-14.
Prasad said the lifespan of the D1 and D3 gas discoveries is 10-11 years and the peak output from the two fields at 80 mmscmd would sustain for 7-8 years.
ďIn order to sustain the peak output of 80 mmscmd from the two fields for 7-8 years, Reliance will invest another $3.5 billion which will include putting up a compression platform along with drilling additional wells. This will help sustain a peak output of 80 mmscmd,Ē he said.
The two gas discoveries (Dhirubhai-1 and 3) and the one oil discovery (in Dhirubhia-26) fields are amongst the 19 discoveries (18 gas and one oil) announced so far by Reliance in its D6 KG basin block (KG-DWN-98/3) off the Andhra coast. The company has already started producing oil from the D6 block and plans to start producing gas from early 2009. Reliance owns 90% of the D-6 block,