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    Reliance's KG-D6 Production Drops 57%


KG-D6 block is located offshore India’s east coast.

by: Shardul Sharma

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Reliance's KG-D6 Production Drops 57%

Indian conglomerate Reliance Industries (RIL) July 19 said its KG-D6 block offshore India’s east coast produced 5.66bn ft3 of natural gas in the three months to June (Q1 2020), down 57% year-on-year owing to shut down of MA field.

RIL said MA field ceased production in September last year due to natural decline. The field is operated by RIL with a 60% interest. Its partners are BP with a 30% interest and Canada’s Niko Resources with the remaining 10%. RIL said assignment of Niko’s participating interest to RIL and BP is currently underway. Earlier this year, RIL said Niko defaulted on cash calls and accordingly default notice was issued as per the provision of joint operating agreement.

The R-Cluster development project remains on-track for first gas by mid-2020, it said. Drilling and lower completions of all six wells have been successfully executed. The company said that the first campaign of offshore installation activities has been completed successfully while engineering and procurement activities are underway for commencement of second offshore installation activities from Q3 2020.

Engineering and fabrication is on track for Satellite Cluster, RIL said. Manufacturing of long lead items is in progress while drilling and lower completion activities of development wells have been planned for Q2 2020. Commencement of first offshore installation campaign is planned during Q4 2020, it added.

For MJ development, major contracts (floating production storage offloading (FPSO), subsea production system (SPS), subsea installations, drilling rig and tangibles) have been awarded. Engineering activities have commenced for FPSO while engineering and procurement actions have been initiated for SPS.

During Q1 2020, RIL’s coalbed methane output was 3bn ft3 as against 3.09bn ft3 during 4Q 2019. The company operates two CBM blocks in the state of Madhya Pradesh. Second phase of the project is in advanced stage and expected to be commissioned by Q3 2020, RIL said.