Reliance begins Satellite development drilling

Vol 22, PW 20 (25 Jul 19) Exploration & Production

Reliance is shifting focus from its depleting D1-D3 fields at KG-DWN-98/3 to the more promising MJ-1, R-Cluster and Satellite fields.

Transocean drillship DD-KG1 began a six-well development drilling programme on July 22 at the Satellite fields where Reliance with partners BP and Niko Resources are hoping for first gas by mid-2021. Reliance spud well KG-D6-E2 in water depths of 1600 metres and began drilling the 'top' hole.

Next it will do the same for well KG-D6-C2. Both wells are planned to 2530 metres TD.

Before this DD-KG1 completed exploration well KG-D6-MW1 up to 4800 metres on July 21 in the D1-D3 area. "Reliance had bad luck (at KG-D6-MW1)," we hear.

"It was dry, plugged and abandoned." Reliance acknowledged depleting output at D1-D3 in a Q1 results announcement on July 19, 2019 saying: "The D1-D3 fields are in a late life stage and affected by low pressure and water ingress related challenges."

After completing top holes for KG-D6-E2 and KG-D6-C2, the Transocean rig is expected to return to the R-Cluster to carry out 'upper completions' at six development wells where lower completions were finished in June 2019. But this plan depends entirely on whether Reliance receives 'X-Mas Trees' in time for R-Cluster where it hopes to produce first gas by mid-2020.

If the X-Mas trees are delayed, DD-KG1 will continue 'top' hole drilling at the Satellite fields where construction of gas evacuation infrastructure should start by March 31, 2020.