Reliance Industries Ltd., Mumbai, is under pressure from the Indian government to “expeditiously drill more development wells in D1 and D3 fields” on deepwater Block KG-D6 in the Krishna-Godavari basin off eastern India.
In a written reply to the Rajya Sabha, upper house of the Indian Parliament, Minister of State for Petroleum and Natural Gas Shri R.P.N. Singh confirmed that the Directorate General of Hydrocarbons had advised RIL to increase drilling.
According to Singh, average gas production during April-June from the block was 48.6 million standard cu m/day (MMscmd). The rate specified by the field development plan for D1 and D3 gas fields and MA oil field during the period is 70.39 MMscmd.
According to DGH records, RIL has drilled 28 wells on its KG-DWN-98/3 (D6) license area, awarded under a production sharing contract in 2000 as part of the first round of India’s New Exploration License Program with a minimum work program of 8 wells. Water depth is about 8,000 ft.
In a financial report last month, RIL said KG-D6 gas production for the quarter that ended June 30 totaled 156.2 bcf, down 18% from the same quarter a year earlier. Crude oil production from the block was down 41% at 1.41 million bbl for the quarter. Condensate production totaled 210,000 bbl, up 82% from the previous year.
RIL operates the block with a 90% interest. Niko Resources Ltd., Calgary, holds 10%. The block is part of a $7 billion deal approved recently by the government under which BP will acquire 30% interests in 21 Indian blocks from RIL, with the Indian company remaining operator (OGJ Online, July 22, 2011).