Reliance Industries Ltd (RIL) has submitted a three-well drilling programme in D6 block on the East Coast. This is to check falling output and increase production from the gas fields.
Those tracking the developments told Business Line that RIL submitted the programme at a meeting of the management committee — which oversees the operations — on June 10. RIL, the operator, proposes to drill one well in the existing producing gas-pool area and two in new areas of the block. Drilling a deepwater well costs close to $50 million.
There was an in-principle agreement among members of the management committee (comprising representatives of Directorate General of Hydrocarbons (DGH), the Petroleum Ministry and contractors) on the programme submitted by the contractor. “Now, the technical team of the DGH will examine the proposal,” a source said.
Plan commitments
Concerned with the drop in the output of D6 block, the DGH has been asking the contractor to meet its field-development plan commitments and add 11 more wells to the existing 20 in the gas-producing area of the block. At the meeting of the management committee held on May 2, the company was asked to drill more wells and come back with a proposal for a work programme according to the FDP.
RIL, which has spent over $5.5 billion in the development of the block, has been unable to contain the drop in output caused because of decline in reservoir pressure and ingress of water. The operator had to drill more wells to raise the output to 61-62 mscmd by April 1, 2011, and 80 mscmd by April 1, 2012, as outlined in the FDP. Reliance had committed in 2006 to invest $8.836 billion in Dhirubhai-1 and -3 fields.
The company is currently producing 48 mscmd from two fields — Dhirubhai-1 and Dhirubhai-3 (40 mscmd), and MA1 (8 mscmd). At present, Reliance has 18 wells hooked up to the network and producing from 16 wells.
RIL has been doing technical studies which will help the company improve output from the fields. Recently, the company also announced a deal with British major BP, one of the best in deepwater exploration.