Reliance KG-D6 block’s production falls to a new low

Reliance KG-D6 block’s production falls to a new lowThe gas production from Reliance Industries' KG-D6 block have fallen to its lowest level ever to the level of about 28 million standard cubic meters per day after the company had to close down six wells because of water and sand ingress.

The Dhirubhai-1 and 3 gas fields in the block saw its production fall to 28.16 mmscmd in the week till 4 March, showed a report submitted by the company to the oil ministry. The total KG-D6 block output along with 6.46 mmscmd of gas production from MA oil field in the region averaged at 34.62 mmscmd in the period between 27 February and 4 March.

The production level of much lower than 61.5 mmscmd rate achieved in March, 2010 as the pressure in wells fell due to increased water ingress. The company has said in a report hat out of the total 18 wells drilled, eight had to be closed.

The production is much lower than the target of 70.39 mmscmd set for this period as part of the field development plan that was approved in 2006. Reliance holds 60 per cent interest in KG-D6, UK's BP Plc holds 30 per cent and Niko Resources of Canada holds the remaining 10 per cent.

The government says that the company is to blame for the fall in production but Relaince says that geological complexities caused the fall in production.