New Delhi: Reliance Industries` MA oilfield
in the predominantly gas-rich KG-D6 block will hit peak output
by this year-end, even as plans are underway to put nine more
gas discoveries in the area into production, its Chairman
Mukesh Ambani said today.
MA oilfield in KG-DWN-98/3, or D6 block in Krishna
Godavari basin, started oil production in September last year
and is currently producing between 10,500 and 11,000 barrels
of oil per day from three wells. Three more wells are to be
added to more than double the output.
"Oil production from the D26 (MA) field has (been) 2.8
million barrels (since production started) with daily peak
production expected by the end of the year," he told company
Bad weather has delayed an increase in production at MA
field as Reliance has not been able to hook up well MA-6H to
the production system. MA-6H was completed in mid-August and
is expected to add between 6,000 bpd and 8,000 bpd to existing
oil production from three MA wells. A fifth well is currently
being drilled that would produce between 3,000 to 4,000 bpd
and a sixth well is planned later this month.
Ambani said Reliance was working on developing nine gas
fields around the giant Dhirubhai 1 and 3 (D-1 and D-3) gas
discoveries which are currently producing around 45 million
standard cubic meters per day or 40 per cent of India`s total
"Initial field development planning for accelerated
monetisation of nine more gas discoveries in this block is
underway," Ambani said.
The discoveries would help extend the plateau production
of 80 mmscmd from D6. D-1 and D-3 field have a peak life of 8
Reliance had in July last year submitted a plan of
investing USD 5.91 billion in developing the 9 satellite
discoveries. This investment is besides the USD 8.836 billion
earmarked for D-1 and D-3. For MA oilfield, the company is
investing another USD 2.234 billion.
The company has till date made 18 gas and one oil
discovery in KG-D-6 block. Of these D-1 and D-3 gas finds are
producing and plans are afloat for nine others.
According to the gas production profile it submitted to
the oil regulator DGH, output from D-1 and D-3 is to rise to
60 mmscmd by year end. "The field is slated for plateau
production by the second half of the year 2010," Ambani said.
In all 18 wells on D-1 and D-3 have been completed so far
and 17 wells commissioned. However, only 11 wells are
currently producing gas with restricted flow rates per well
because of delays on Government part in naming customers.
D-1 and D-3 have a combined peak capacity of about 550,000
barrels of oil equivalent per day.
"At current prices of crude oil of USD 80 per barrel,
they imply a saving of USD 11 billion (about Rs 53,000 crore)
per year in energy imports by India," he said.