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Reliance D6 gas output down due to fewer wells

Reliance D6 gas output down due to fewer wells

New Delhi: Gas output from Reliance Industries-operated D6 block, off east coast, has declined as it drilled fewer wells than planned and six wells have ceased to produce due to the entry of sand or water, oil minister said on Thursday.

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“The contractor has neither drilled the remaining nine producing wells nor taken any alternative action such as revision of the FDP for approval of management committee as per the provision of the production sharing contract," he wrote.

Five out of 18 gas producing wells in the two fields have stopped production due to water loading and sand ingress, Reddy said, adding, one well in the MA oil field out of six producing wells has stopped output due to water loading.

Reliance’s share price has fallen over 29% this year, underperforming the broader index, on investor worries about declining output at its key offshore India gas field.

This year, Reliance brought in the expertise of BP to help it on the offshore D6 block, where output is lagging targets, and the British company has said production from the field off India’s east coast could rise from 2014.

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