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RIL to repair wells to raise KG-D6 gas output

Reliance Industries will repair a third of the wells shut at its main gas field in the eastern offshore KG-D6 block to boost output in the first quarter of 2014.

RIL closed half of the 18 producing wells at the Dhirubhai-1 and 3 gas fields in the KG-DWN-98/3, or KG-D6 block, due to sand and water flooding, leading to an 85 per cent output drop at 9.4 million standard cubic meters a day.

The company is mobilising a drilling rig for the D1&D3 fields ‘to commence a three-well workover programme that is expected to increase the volumes from this field in the fourth quarter of the fiscal year (ending 31 March, 2013),’ said Niko Resources, a minority partner in the KG-D6 block.

Niko, which holds a 10 per cent interest in the KG-D6 block, said in its second-quarter earnings statement that the workovers will ‘contribute’ to an increase in gas production. BP Plc of UK holds the remaining 30 per cent in KG-D6.

RIL, the operator of the block with a 60 per cent stake, produced 12.26 mmscmd from the D1&D3 gas fields and the MA oil and gas field in the block in the Bay of Bengal in the week ended 27 October, according to a status report of the Directorate General of Hydrocarbons (DGH).

The DGH report said the D1&D3 fields produced 9.39 mmscmd of gas, while the remainder came from the MA field.

The KG-D6 fields, which began gas production in April 2009, hit a peak output of 69.43 mmscmd in March 2010 before water and sand ingress shut down well after well. D1&D3, the largest of the 18 gas discoveries in the KG-D6 block, produced 66.35 mmscmd, while 3.07 mmscmd was the output from the MA field, the only oil discovery on the block.

Besides the fall in output from D1&D3, gas production from the MA field, which had hit a peak of 6.78 mmscmd in January 2012, has dropped.
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