RIL shuts permanently its only oilfield in KG-D6 block

Sarkaritel
By Sarkaritel September 21, 2018 22:40

RIL shuts permanently its only oilfield in KG-D6 block


Mumbai, Sep 21 (IANS) The Reliance Industries (RIL) on Friday said it has permanently shut down its only oilfield in the eastern offshore Krishna-Godavari (KG) basin D6 block after it stopped producing crude.

The Dhirubhai-26 (D26) or MA was the only oil discovery in the block being operated by the consortium of RIL, British oil giant BP and and Canada-based Niko Resources.

“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 per cent), BP (30 per cent) and Niko (10 per cent), has ceased production on September 17, 2018,” the RIL said in a stock exchange filing.

“Production from the field had been under natural decline and facing continuous challenges due to high water production and sand ingress. The field has cumulatively produced about 0.53 trillion cubic feet of gas and 31.4 million barrel of oil and condensate and had no remaining reserves.”

According to the company, the D26 oil, gas and condensate deep water discovery was made in 2006 and began production in September 2008.

“Relevant governmental agencies have already been informed,” the filing said.

“For Q1 (April-June) 2018-19, MA field contributed less than 0.1 per cent in terms of revenue at RIL consolidated level,” it added.

As per petroleum regulator Directorate General of Hydrocarbons data, sand and water penetration into the deepwater field has caused output to decline for many years now and it produced just 0.14 million barrels of oil in the first quarter of this fiscal.

The RIL stock closed on Friday at Rs 1,216.85 a share, up Rs 6.55, or by 0.54 per cent, over its previous close on the BSE.

Sarkaritel
By Sarkaritel September 21, 2018 22:40