Panna and Mukta begin production month after mishap

Vol 12, PW 4 (10 Jul 08) Exploration & Production
     

Oil and gas production has restarted from the Panna and Mukta fields offshore Mumbai - a full month after they shut down following an accident that killed a worker on the Panna platform.

PETROWATCH learns oil and gas production began on the night of July 4. “Oil production began with 20,000 b/d and gas production began with 90m cf/d,â€‌ we are told.

Normal oil production from Panna and Mukta is 40,000 b/d and gas production is 200m cf/d. Consortium partners British Gas, Reliance and ONGC believe production will return to near normal by the end of this week.

A second compressor was scheduled to begin operations on July 9. “This will add between 10,000 b/d and 15,000 b/d to oil production and raise gas production to 150m cf/d,â€‌ reports a consortium source.

Gas production at the Tapti field was unaffected by the June 3 accident, which hit production from the Panna and Mukta fields. “Tapti has been producing at the normal level of 430m cf/d,â€‌ we hear.

“Gas production from Panna and Mukta are likely to remain at 150m cf/d for all of July.â€‌ One source is not too worried about the impact of the month-long shutdown.

“You can’t really say there was a loss of production because the oil and gas remained underground,â€‌ he tells us. “At one time it would have been right to say that the Net Present Value (NPV) took a hit because of non-production, but given rising oil prices the month-long delay has turned out to be good for the NPV.

â€‌ Consortium sources tell us in-place oil at Panna is estimated at 1.2bn barrels of which 120m barrels has been produced. Oil and gas reserves numbers for Mukta are yet to be finalised by the consortium.

Panna and Tapti are each believed to hold 3-tcf gas, of which about 10% is recovered. Panna, Mukta and Tapti began production in 1984, first under ONGC, and then by a JV of Enron (30% and operator), Reliance (30%) and ONGC (40%).

Enron later sold out to British Gas.

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