No option but to let D1 and D3 “drain out”

Vol 16, PW 10 (29 Nov 12) Exploration & Production

Reliance has bravely admitted it is impossible to arrest declining production at the D1 and D3 gasfields at KG-D6 and instead wants to focus on developing satellite discoveries 80-km away using Transocean drillship Dhirubhai Deepwater KG2 (DD-KG2).

Reliance expects DD-KG2 to reach India by end-November from Mozambique where she is drilling for Eni. “DD-KG2 will reach Kakinada between November 25 and 30,” we hear.

“Add four or five days for clearances and she should be on location early December.” Reliance has already drilled four exploration wells in the satellite area: D2, D6, D19 and D22, all discoveries.

DGH and oil ministry clearances came last week to convert exploration well D19 into development well G2 by drilling to 2450 metres TD in water depths of 1330 metres - the first development well in the satellite area. “Reliance’s contracts department has lined up all services,” we hear, “and is ready to start drilling.

” Reliance took up to three and a half months to drill similar wells at the D1 and D3 areas of KG-D6, where hopes of restoring gas production to previous levels of 60m cm/d have faded. “Reliance and BP have been studying the D1 and D3 area for one and a half years,” adds Reliance.

“We don’t see any chance of tapping a new pool so have decided against drilling more wells and will let the area drain out.” Expect gas production at D1 and D3 to fall from 19.8m cm/d to 10m cm/d by 2014-15.

By then Reliance expects to be producing up to 10m cm/d from eight satellite wells in the satellite area.

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