DGH panel to decide cut in gas reserves at RIL’s KG-D6
24 Sept 2013 3:59 AM IST
A block oversight panel headed by oil regulator DGH will meet shortly to decide on Reliance Industries' proposal to slash gas reserves in main fields in its KG-D6 block by two-third and cut investments by $3 billion.
The Management Committee (MC), which also comprises representative of oil ministry, has to decide on accepting revised field development plan (RFDP) that slashes recoverable reserves in Dhirubhai-1 and 3 (D1&D3) fields to 3.4 trillion cubic feet from 10.03 Tcf estimated in the original plan of 2006.
Also, two-phase capex plan of $8.836 billion (proposed in 2006) has been reduced to $5.928 billion.It will decide if 80 per cent drop in production to 13.48 million standard cubic meters per day was due to geological reasons or due to non-drilling the committed quota of 31 wells as claimed by DGH.
'MC meeting would be held soon. They have to decide what to do. And if they can't agree on the next course of action, they will refer to ministry and then the ministry will take a call,' Oil secretary Vivek Rae said.
If needed, the ministry may appoint an international expert to ascertain the facts, he said.Rubbishing claims of holding back gas production for higher prices, RIL-BP last week told Oil Minister M Veerappa Moily that the undrilled quota of 11 wells would not increase production and current wells are enough to drain out the known reserves.
While drilling of the remaining 11 wells would require over $1.65 billion investment, the same reserves can be produced by spending around $0.5 billion in repairs and compression, they told Moily in a meeting also attended by Rae and DGH.
The Management Committee (MC), which also comprises representative of oil ministry, has to decide on accepting revised field development plan (RFDP) that slashes recoverable reserves in Dhirubhai-1 and 3 (D1&D3) fields to 3.4 trillion cubic feet from 10.03 Tcf estimated in the original plan of 2006.
Also, two-phase capex plan of $8.836 billion (proposed in 2006) has been reduced to $5.928 billion.It will decide if 80 per cent drop in production to 13.48 million standard cubic meters per day was due to geological reasons or due to non-drilling the committed quota of 31 wells as claimed by DGH.
'MC meeting would be held soon. They have to decide what to do. And if they can't agree on the next course of action, they will refer to ministry and then the ministry will take a call,' Oil secretary Vivek Rae said.
If needed, the ministry may appoint an international expert to ascertain the facts, he said.Rubbishing claims of holding back gas production for higher prices, RIL-BP last week told Oil Minister M Veerappa Moily that the undrilled quota of 11 wells would not increase production and current wells are enough to drain out the known reserves.
While drilling of the remaining 11 wells would require over $1.65 billion investment, the same reserves can be produced by spending around $0.5 billion in repairs and compression, they told Moily in a meeting also attended by Rae and DGH.
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