Aug 23, 2011

Reliance shuts oil production facilities in KG-D6

Reliance Industries (RIL) has
shutdown production facilities at an oil field in its
showpiece KG-D6 block off the Andhra coast for maintenance
without any impact on production till now.
RIL on July 31 took a shutdown to do maintenance work at
a compressor on the Floating Production Storage and Offloading
(FPSO) unit operating in the MA oilfield, sources said.
MA oilfield produces a little less than 15,000 barrels
per day of oil and about 7.6 million standard cubic meters per
day of natural gas from the five wells.
The wells have not been shutdown and they continue to
produce at almost normal rate, sources said.
KG-D6 block, which besides MA oilfield also includes the
gigantic Dhirubhai-1 and 3 (D1 and D3) gas fields, is
producing about 45.4 mmscmd of gas today as compared to over
46 mmscmd last week.
Sources said the maintenance work will last 12-14 days
and
gas production from MA field will be shut for only 36-48 hours
around this weekend.
Sources said wells in the MA field have not been shutdown
during the maintenance of FPSO which pumps out oil from the
field. The wells continue to produce oil and gas.
While gas production from MA oilfield has come down by
0.2-0.3 mmscmd, one out of the 16 production wells in the D1
and D3 has also been shutdown for maintenances, reducing
output by 0.4-0.5 mmscmd.
The Krishna Godavari basin Block KG-DWN-98/3 (D6) has 19
oil and gas finds. Of these, the largest, Dhirubhai-1 and 3
finds and an oil field, MA, have been put into production.
RIL plans to upgrade a gas compressor during the
shutdown. For two days, all gas will have to be flared and
there will be none available for sale, sources said.
The present output is just enough to meet the contracted
demand of core sectors -- 15.35 mmscmd of fertiliser units, 29
mmscmd of power plants, 0.65 mmscmd of city gas distribution
firms and 2.59 mmscmd to LPG plants.
Sources said in May, the oil ministry had directed that
production from KG-D6 will first go to meet the contracted
demand of core users. If any gas is left after that, it can go
to non-core sectors like petrochemicals, refineries and steel.
In event of output falling below what has been allocated
to core users, fuel will first be supplied to fertiliser
plants to their full requirement, then to LPG plants, power
and lastly to city gas users.
If this priority remains, then city gas companies like
Indraprastha Gas Ltd, which sell CNG to automobiles and piped
cooking gas to households in Delhi, will run dry for about two
weeks. Supplies to LPG plants of GAIL would also be impacted
unless the oil ministry says the cut in supplies would be
pro-rata.

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