Niko Resources Ltd, partner in Reliance Industries-operated D6 block, will submit an integrated development plan for commercialising additional 3 trillion cubic feet of gas by October.
This, according to Niko will add approximately one billion cubic feet a day or 30 mmscmd into current gas production. The producing fields (D-1, D-3 and MA) in the block are currently flowing 35 mmscmd of gas.
So far five gas fields have been discovered in the block. Reliance and its partners have come in for severe criticism for the falling output from the gas fields and their inability to check it.
According to sources, the integrated development plan is for, optimised field development for the four satellite fields, R-series finds (D-29, D-30, D-31), four more satellite fields, as well as D-34, in the block.
This will maximise use of the entire existing infrastructure to produce balance of discoveries from the block and result in a saving of about $1 billion, the sources said.
The contractors’ contention that geological complexities stopped it from firming up appropriate drilling locations in D6 block has not been accepted by the Directorate General of Hydrocarbons (DGH).
However, the two – DGH and the contractor – have been working together in their efforts to increase the output.
The reasons for lower output from the D1 and D3 gas producing fields in the block, according to DGH, may be attributed to drilling less number of development wells (or producing wells) as compared to that envisaged by the block management committee approved development plan.