D6 gas production still waiting for judicial â€کgreen light'

Vol 12, PW 11 (16 Oct 08) Exploration & Production

If you’re wondering why Reliance isn’t deploying its deepwater drilling rigs to other blocks the reason is simple: they’re fully occupied at D6, preparing for first gas production early next year, if the Mumbai High Court allows.

PETROWATCH learns Transocean owned and operated drillships Deepwater Frontier, Discoverer 534 and newly arrived Deepwater Expedition are busy â€کcompleting’ the multitude of production wells at D6 that should see first gas production of between 15m cm/d to 20m cm/d flowing from the Dhirubhai-1 and Dhirubhai-3 discoveries by late December or January next year. Another deepwater Transocean floater C.

Kirk Rhein has been â€کde-hired’ while a fifth, Actinia, is busy plugging and abandoning a dry well at west coast exploration block GS-OSN-2000/1. Actinia’s next destination is as yet unclear.

How close is Reliance to start-up production of first D6 gas “Everything is almost ready,â€‌ we hear. “There has been some delay because of bad weather but otherwise it’s all proceeding to plan.

â€‌ Clearly off-plan, however, is the continued litigation over D6 gas ownership and a judicial ban on gas sales until Ambani siblings Mukesh and Anil settle their playground squabble. “The biggest constraint is not being able to sell the gas,â€‌ we hear.

“If Reliance can’t sell the gas it won’t turn on the tap.â€‌ How long can Reliance keep the tap off “With a gasfield development of this nature it is technically possible to keep the tap turned off for some time,â€‌ we learn.

“But you are talking weeks, not months. Any longer will cause problems.

â€‌ After the successful start-up of MA oil production last month Reliance is privately furious that first D6 gas production is out of its control - in the hands of lawyers. “In terms of barrels of oil equivalent D6 is bigger than the Mumbai High,â€‌ we hear.

“The whole country is waiting for D6 gas. People shouldn’t be denied the benefit of this discovery.