RIL KG-D6 gas fields may hold lower reserves: Niko
New Delhi: Reliance Industries' offshore KG-D6 fields may hold lower than previously anticipated natural gas reserves, the company's minority partner Niko Resources said on Thursday.
The Canadian firm in a statement said it expects a drop in reserves at Dhirubhai-1 and 3 (D1 & D3), the largest of the 18 gas finds in KG-D6 block.
"Production performance at the D1/D3 fields within the D6 block indicates the need for a revision to the current geological model. While analysis continues, Niko anticipates a drop in its reserves for the D1/D3 fields," the company said without giving details.
D1 & D3 had previously been stated to hold about 11 Trillion cubic feet of gas reserves. Niko, which holds 10 percent stake in the RIL-operated KG-DWN-98/3 or KG-D6 block off the Andhra coast, had last month stated that gas production in the October-December quarter from the D6 block averaged 40.49 million cubic meters per day, as compared to 55.21 mmcmd in the year-ago period.
D6 gas production in December averaged approximately 137 mmcfd (38.79 mmcmd for the entire block), Niko had said. "Declines are expected to continue until workovers are completed and/or additional wells are tied in," it had added.
The current output is less than half of the peak 80 mmcmd that RIL had projected as fewer wells were drilled than planned and seven wells ceased to produce due to the entry of sand or water.
RIL has so far drilled 22 wells on D1&D3 but only 18 were put on production. Of these, six have ceased due to water/sand ingress. The company is to do workovers or maintenance of these well, which may raise the output, Niko said.
MA oilfield in the same block had seen one out of the five wells cease due to the same reasons.
The Canadian firm today said plans were approved for the development of the first four satellite discoveries around the currently producing D1&D3. Besides sizeable production would come when R-Series fields in the block are developed.
"On the positive side, as development plans are approved, Niko contemplates additional reserves from the R complex, satellite fields and full block development," Niko said.
These fields can add up to 30 mmcmd to the output. RIL holds 60 percent interest in the 7,645-sq-km D6 block after farming-out 30 percent stake in BP Plc of UK.
Production of oil from the MA discovery began in September 2008 and production of gas from the Dhirubhai 1 and 3 (D1 & D3) discoveries in April 2009. The Company has been granted petroleum mining licences for the discoveries expiring in 2028 and 2025, respectively.