D6 drilling dispute

Vol 15, PW 2 (28 Jul 11) News in Brief

Reliance continues to resist DGH demands to drill an additional 13 wells at D6 by March 2012.

Reliance, it seems, is prepared to drill three additional wells only, but the DGH wants it to clear a backlog of two wells from last year, plus an additional 11 this year. “Reliance wants to see the results of three wells before drilling more,” we hear.

“But the DGH wants it to put a total of 13 wells on production this fiscal.” Unless Reliance agrees, the DGH says it will block a proposed $739.43m development plan for this fiscal.

In the next few days, the oil ministry will write to the DGH supporting its hard stand, saying Reliance should adhere to the original Field Development Plan (FDP). “Reliance’s re-cast work programme and budget for the D1 and D3 gasfields is not in line with the approved FDP,” asserts an oil ministry official.

In the FDP, Reliance pledged to produce gas from 31 wells by April next year. By April this year it was to produce from 22 wells, but has completed only 20.