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The Krishna-Godavari D6 block operated by Reliance Industries Ltd may not be able to produce more than 40-50 million standard cubic metres a day (mmscmd) natural gas without new discoveries, a significant drop from earlier estimates.
Though there were reports of the block’s output hitting 120 mmscmd, the company maintained that no such estimation had been made. RIL had said the facility for producing 80 mmscmd was so designed that future facilities could be integrated with it to deliver 120 mmscmd natural gas.
A senior company official said the fall in output was mainly on account of continued drop in production from the largest producing fields (D1, D3) in the block. The output from D1, D3 and MA fields in the block today stands at about 21 mmscmd after hitting a peak of 60 mmscmd in end-2009. This output is expected to decline further.
Earlier, Reliance and its partners in the block — BP and Niko Resources — were looking at producing 80 mmscmd from D1 and D3 fields alone and the remaining was to come from other discoveries in the block taking the total to 120 mmscmd. Under the circumstances, even if the newer finds — the four satellite fields coupled with R-Series discovered in the D6 block — go on stream, these can together add about another 30 mmscmd, an official told Business Line . Reliance is targeting 2015-16 to bring the satellite discoveries on stream.
Reliance and its partners are also optimistic about the MJ1 discovery in one part of the producing gas fields (D1 and D3). They feel that MJ1 could have significant gas reserves and if mandatory approvals are attained, then it can add to the output. The contractors have written to the Petroleum and Natural Gas Ministry to allow it to go ahead with drilling the MJ1 well. The well, according to the contractor, is a critical piece in its plan to increase production from the block.
With MJ1, the contractors are looking at adding another 10 mmscmd.
This along with other discoveries may take the total output up to 50-60 mmscmd, sources said. On the drilling activity (G2 well) in D6 block which started on December 2, the official said the drilling is expected to be completed by the end of this week. RIL and its partners started drilling work in one of the satellite fields after a lull of almost 15 months.
D1-D3 fields fall in North-West area of the block, while this satellite is North of D1-D3 and closer to ONGC’s KG-DWN-98/2. The well G2 is in D19 satellite discoveries in the block.
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