Production from the field had been in natural decline and was facing continuous challenges because of high water production and sand ingress, Reliance Industries said
Mumbai: Reliance Industries Ltd (RIL) has shuttered its only oilfield (MA field) in the D6 block in the Krishna Godavari (KG) basin due to lack of any production.
“This is to inform that MA (D26) field in block KG-DWN-98/3 (KGD6), which is being operated by RIL as an operator of the joint venture consisting of RIL (60%), BP (30%) and NIKO (10%), has ceased production on 17 September 2018. Post-cessation activities related to safe shutdown of the field are underway," RIL informed the stock exchanges on Friday.
Production from the field had been in natural decline and was facing continuous challenges because of high water production and sand ingress.
The field has cumulatively produced about 0.53 trillion cubic feet (TCF) of gas and 31.4 million barrels of oil and condensate and has no remaining reserves.
The fields were predicted to last a minimum 15 years but have been exhausted in less than a decade. In April-June 2018-19, the MA field contributed less than 0.1% in terms of revenue at the consolidated level, RIL said.
The Dhirubhai-26 (D26), oil, gas and condensate deepwater discovery was made in 2006.
This was India’s first deepwater development, entailing a water depth of up to 1,250 metres.
“Relevant governmental agencies have already been informed," RIL said in its notice.
The company had made 19 oil and gas discoveries in the KG basin, of which D26 or MA—the only oil discovery—was the first to begin production in September 2008. The Dhirubhai-1 and 3 (D1 and D3) gas fields went on-stream in April 2009.
The field had in the first month produced 39,976 tonnes of crude oil, peaking at 1,08,418 tonnes in May 2010. Output, however, has been declining since and it produced 0.14 million barrels in the April-June quarter this year.
Sand and water ingress has forced the shutting down of well after well. The D1 and D3 fields, too, had a peak in March 2010 when their combined output touched 61.4 mmscmd. Production has since declined. The KG-D6 output in April-June averaged at 4.7 mmscmd. It comprised production from the D1 and D3 fields and the MA field.
RIL, along with its partner BP Plc, is now developing three sets of discoveries—R-Cluster, Satellite Cluster and MJ fields—in the KG-D6 block at a cost of ₹ 40,000 crore. These fields are expected to bring peak output of 30-35 mmscmd, with gas set to flow from 2020.
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