D6 gas will come to market end-2008

Vol 11, PW 13 (01 Nov 07) News in Brief

Aker Floating Production has confirmed what most fertiliser and power plants in India now accept: first Reliance gas from D6 will reach customers only by the end of next year, not in June as earlier thought.

“Production start-up will take place in two phases,â€‌ said Aker on October 23, announcing a $100m operations and maintenance contract with Reliance for the Aker Smart 1 FPSO. “Oil production is scheduled for April 2008, and gas production will begin in the â€کfall’ (autumn) of 2008.

â€‌ Why end-2008 “Commissioning the gas â€کtrain’ will take time,â€‌ Aker CFO Ivan Borner tells us. “Four gas compressors will start up one after the other.

Gas will first need to be flared.â€‌ In May this year Reliance signed a five-year contract for Aker Smart 1, valued at $850m, with an option to extend to 10 years.

Under construction at the Jurong shipyard in Singapore, Aker Smart 1 will be ready to sail to D6 “by mid Marchâ€‌ next year, with April 6 set as the target date for first oil from the MA field.