Reserves cut for KG D6 fields offshore India

Disappointing reservoir performance of two fields on the once-promising KG D6 block in deep water offshore eastern India has led to sharp cuts in reserves estimates (OGJ Online, Jan. 20, 2012). For a smaller field on the block, the reserves estimate has increased.

India’s Ministry of Petroleum and Natural Gas said the operator, Reliance Industries Ltd., has slashed reserves estimates for D1 and D3 fields to 3.1 tcf from the 10.3 tcf estimated when development began. For MA field, RIL has lifted the reserves estimated to 788 bcf from 681.4 bcf, the ministry said.

The Directorate General of Hydrocarbons, which has publicly criticized RIL for drilling fewer wells on the KG D6 block than called for in its work program, said 6 of 18 gas wells in D1 and D3 fields have ceased production because of sand or water encroachment. It said two of six oil and gas wells in MA field have watered out. Water depths on the block are 600-1,200 m.

RIL has defended its reservoir management against the government’s criticism (OGJ Online, Sept. 9, 2011).

In a financial report last month, RIL said quarterly production from the KG D6 block was down 36.7% for oil, 33.1% for natural gas, and 30.6% for condensate from the totals of the same quarter a year earlier. It blamed “reservoir complexity and natural decline.”

The KG D6 totals the company reported for the most recent quarter are 900,000 bbl of crude oil, 104.4 bcf of gas, and 100,000 bbl of condensate.

RIL said it will submit a revised field development plan for D1 and D3 fields and push for approval of a similar plan submitted earlier for MA field. It also will propose an integrated development plan for other discoveries on the block.