MA production around 12,000 b/d

Vol 12, PW 11 (16 Oct 08) News in Brief
     

Production of Reliance’s MA crude is rising faster than expected.

“It’s around 12,000 b/d today,â€‌ we hear. “When production started it was around 5000 b/d but it has picked up fast.

Reliance will soon begin injecting gas and then production will pick up even faster.â€‌ PETROWATCH learns Reliance plans to install a â€کgas injection module’ by the end of this month.

Analysts predict that if Reliance can increase production at this rate it might beat its self-imposed target of reaching 40,000 b/d peak output by latest March next year. All MA crude output is flowing into the company’s FPSO, on hire from Aker Floating Productions, which has a total storage capacity of 1.2m barrels.

Unclear is when exactly Reliance will start issuing spot tenders for the crude but Hindustan Petroleum’s Vizag refinery is rumoured to be the favoured destination, given its proximity to MA. Traders tell us the field produces light sweet crude with an API of around 41 and will sell at Brent minus $5.34 a barrel.