How new D6 development plan differs from old one

Vol 11, PW 1 (17 May 07) Exploration & Production

Reliance’s new field development plan is a significant upgrade over the original development plan approved two years earlier.

Here’s a breakdown. Comparison of activities in Reliance’s original and new development plans Activities Original development plan New development plan Development wells 34 50 Sub-sea manifolds 10 12 Deepwater PLEMS 1 2 Control-cum-riser platform Nil 1 Gas pipelines 2x24-inches 3x24-inches, 2x18-inches Infield pipelines 10x14/16-inches 12x16/18-inches Well flow lines 34 50 Processing trains 3x15m cm/d 4x20m cm/d with provision for two more MEG lines 2x6-inches 3x6-inches Offshore compression Nil 1Reliance had to re-work its production strategies, which resulted in additional costs, “due to the soil and environmental conditions on the Krishna Godavari shore, necessitating a control platform and other associated facilities.

â€‌ Costs are also up significantly because rig hiring “which forms the single major component in drilling operations, has gone up many times since 2003 when the original development plan was prepared.â€‌ In 2003, (deepwater) rig rates were about $100,000/day but are now running at $375,000/day.

In addition, the costs of steel pipes are up by about 90%; fabricated equipment is up by about 50% while project management costs have risen by about 80%. Commercial production of gas is scheduled to begin in June 2008 from two discoveries: Dhirubhai-1 and 3.

Reliance will bring gas to market from the other discoveries over time.