RIL resumes oil output from K-G block
27 Apr 2009
After a shut-down that lasted a little longer than expected, Reliance Industries on Sunday resumed production of crude oil at its gas-rich KG-D6 block off the east coast. The pre-planned shutdown on 22 March was in order to connect new wells.
"Production from MA field in KG-D6 block restarted on Sunday,'' a news agency quoted a company source as saying on Monday. The field was producing a couple of thousand barrels per day on restart but would quickly ramp up to 20,000 barrels per day (bpd) in a day or two.
The MA field was producing about 18,000 bpd of oil from three wells when it was closed. Three more wells have been hooked up during the shutdown. "Output is expected to rise to 40,000 bpd before the end of April-June quarter,'' the source was quoted as saying. However, RIL refused to comment officially.
The MA field in KG-DWN-98/3, or KG-D6 off the Andhra Pradesh coast, began pumping oil on 17 September 2008, and had had produced 790,000 barrels of oil till 9 December, when output ceased due to equipment failure. It had resumed production in early March after the three-month shutdown, according to the report.
Reliance is the operating partner with a 90 per cent stake in the 7,645 square km D6 block in Krishna Godavari basin. Niko Resources of Canada holds the remaining 10 per cent.
The production of gas from RIL's platforms will go a long way in meeting the demands of the country's growing economy, with fertiliser and power companies emerging as direct beneficiaries. Gas from KG-D6 basin is expected to save the country about $9 billion in oil imports per annum, as well as drastically reduce the country's burden in subsidizing fertiliser production. India spent almost $7 billion last year in providing subsidies to fertiliser companies.
