Reliance planning two sidetrack wells at MA

Vol 19, PW 12 (25 Feb 16) Exploration & Production
     

Transocean drillship DD-KG2 is expected to mobilise by May to begin sidetracking two wells at the MA oil and gasfield for Reliance and partners BP and Niko Resources.

A Reliance source confirms it is analysing the wells before beginning the sidetrack operation using DD-KG2, presently anchored off Gangavaram Port. "We released DD-KG2 (in 2015) with the condition that it must come back to us for the sidetrack operation," he says.

Another consortium source adds that maintaining oil and gas production at MA, which is ring-fenced within the KG-DWN-98/3 (D6) permit, is a major challenge. Gas production from the main D1 and D3 fields is 6m cm/d while MA is producing 3.5m cm/d, so total production stands at 9.5m cm/d.

MA is also producing "up to" 4000 b/d of oil plus condensate. "Production is declining rapidly," says a D6 consortium source.

"Sand and water cut (in the wells) is increasing." Another headache are pipelines and infrastructure at the block built assuming peak gas production of 80m cm/d.

"But really we're producing only 9.5m cm/d," adds a source. "The pipelines have large diameters and pushing whatever little gas we are producing to shore is difficult.

We have to ensure constant compression so gas can be pushed to the onshore terminal." With production plummeting and with it diminishing returns, don't expect the consortium to invest in smaller diameter pipelines to overcome the problem.