10 Aug 2012

Estimates of KG D6 Reserves

The Minister of State for Petroleum and Natural Gas Shri R.P.N. Singh informed the Lok Sabha in a written reply today that Directorate General of Hydrocarbons (DGH) under his Ministry has reported that the gas production from the block KG-DWN-98/3 in Krishna-Godavari basin operated by M/s Reliance Industries Limited (RIL) during the last three years is as under: 

Gas Production
(Billion Cubic Meters)

He added that DGH has reported that the decline in gas production from the block in 2011-12 is due to the following reasons:
1.      Out of total 18 gas producer wells in D1 & D3 fields of the block, 6 wells have ceased to produce gas due to water/sand ingress in wellbores.
2.      Out of 6 Oil/gas producer wells in MA field in the same block, 2 oil/gas producers have ceased to flow oil/gas due to water ingress in wellbores.
3.      Non drilling of the required number of gas producer wells in D1 & D3 fields by the Contractor in line with the Addendum to Initial Development Plan (AIDP) approved by the Management Committee (MC). 
The Operator has attributed lower gas production as compared to approved AIDP from D1 & D3 fields to unforeseen geological surprises and reservoir. 
            The Minister also informed that the quantum of gas reserves estimated by the contractor in the block prior to commencement of work was 10.3 Trillion Cubic Feet (TCF) in case of D1 & D3 fields and 681.4 Billion Cubic Feet (BCF) for MA field as recoverable reserves. Subsequently, the contractor revised the estimates of recoverable reserves of D1 & D3 fields and MA field as 3.10 TCF and 788 BCF respectively. 
            He further said that the contractor has attributed various reasons for reduction in reserves such as production performance, pressure decline,early water encroachment, less contribution from the sands outside the main channel areas, results obtained from Material Balance, Simulation and Geological Models etc. Initially, the contractor has submitted the estimates of reserves based on the studies carried out by resource/reserves estimation agencies like D&M, Petrotel & PGS. Subsequently, the contractor had submitted gas reserves certified by Gaffney Cline Associates (GCA) of U.K.

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