Reliance shuts sole oilfield in KG Basin
Mumbai: reliance Industries Ltd (RIL) has shuttered its only oilfield (MA field) in the D6 block in the Krishna Godavari (KG) basin due to lack of any production.
“This is to inform that MA (D26) field in block KG-DWN-98/3 (KGD6), which is being operated by RIL as an operator of the joint venture consisting of RIL (60%), BP (30%) and NIKO (10%), has ceased production on September 17, 2018. Post cessation activities related to safe shutdown of the field are underway,” RIL informed the stock exchanges on Friday.
Production from the field had been in natural decline and was facing continuous challenges because of high water production and sand ingress. The field has cumulatively produced about 0.53 trillion cubic feet (TCF) of gas and 31.4 million barrels of oil and condensate and has no remaining reserves.
The fields were predicted to last a minimum 15 years but have been exhausted in less than a decade. In April-june 2018-19, the MA field contributed less than 0.1% in terms of revenue at the consolidated level, RIL said.
The Dhirubhai-26 (D26), oil, gas and condensate deepwater discovery was made in 2006. This was India’s first deepwater development, entailing a water depth of up to 1,250 meters.
“Relevant governmental agencies have already been informed,” RIL said in its notice.
The company had made 19 oil and gas discoveries in the KG basin, of which D26 or Ma—the only oil discovery—was the first to begin production in September 2008. The Dhirubhai-1 and 3 (D1 and D3) gas fields went onstream in April 2009.