The verdict on the factual schedule of first oil and gas production from the country?s biggest oil and gas discovery in the Krishna Godavari basin?D6 block (KG-DWN-98/3) of Reliance Industries Limited?is finally out.
A detailed project report submitted by the Directorate General of Hydrocarbons (DGH) to the petroleum ministry makes it clear that gas production from the two gas finds?D1 and D3 should commence by November, in the best possible scenario and may even slip by two months to January 2009, if last mile project work gets delayed due to bad weather.
The DGH report says the initial rate of gas production from the block will be 15 million metric standard cubic meters of gas per day and will be stepped up later to 40 mmscmd.
Alongside, the oil production from the MA discovery in the same block will be in the range of 15,000 to 20,000 barrels of oil per day and will commence from September-end or beginning of October. Plateau oil production rate has been listed as 40,000 bopd, which the DGH says will be achieved after drilling of the remaining wells in the block.
Oil and gas production from deepwater block of RIL is also the first in Indian offshore. The deepwater D6 block in the KG basin, where 18 oil and discoveries have been notified so far, was awarded to RIL under the first round of the New Exploration and Licensing Policy (NELP-I). While RIL holds 90% stake in the offshore block, Canada?s Niko holds the remaining 10%.
It is significant to note here that even as the timelines for gas production from RIL?s D6 block is out, the legal dispute between the two Ambani brothers continues unabated. Anil Ambani RNRL is fighting a case against Mukesh Ambani?s Reliance Industries Ltd over rights to gas from the latter?s find in Krishna-Godavari basin.
RIL and RNRL are embroiled in a law suit over RNRL?s entitlement to 28 mmscmd of KG gas for 17 years at $2.34 per million Britih Thermal Unit. As against this, the price approved for RIL?s gas by the Empowered Group of Minister (EGOM) stands at $4.21 per mmbtu. The case between RIL and RNRL has been adjpurned till September 30.
