Crude production at RIL's eastern fields dropping: report

Crude production at Reliance Industries' MA oilfield at the gas-rich KG-D6 block, off the east coast, has dropped over 31 per cent, reports quoting sources close to RIL said today.

 RIL, which began commercial production of oil from these wells in September 2008, had reported crude output of 34,041 barrels in the second year and 28,684 barrels as production entered the third year.

"The reservoir is not working as per the predictions. Daily production has dropped hugely, from 32,000 barrels a day in the month of May to 22,000 barrels at present," the report quoted a source at RIL's oil development partner, as saying.

Besides crude oil, the MA oilfields also produce natural gas to the tune of 7-8 million standard cubic meters per day. The combined gas production at the KG-D6 block, including the MA and Dhirubhai-1 and 3 gas fields, is estimated to be around 60 mmscmd.

Meanwhile, a CNBC-TV18 report today said British Petroleum and Reliance are expected to resume talks on RIL's exploration and production (E&P) deal.

RIL, the report said, is looking at farming out its E&P assets to BP. The two had earlier abandoned talks after BP's Gulf of Mexico oil spill, it added.