Reliance Industries rebuts DGH’s Independent Consultant’s KG-D6 report

RIl rebuts DGH's independant consultant report
Reliance Industries has recently been facing warnings from Directorate of Hydrocarbon (DGH), the oil regulator, for falling natural gas production from KG-D6 fields. The company has rebutted the report made by independent consultant, P Gopalakrishnan saying that the consultant neither visited the field nor asked the company to present its views on reasons for falling production.

P Gopalakrishnan was appointed to look into the reasons for fall in production of natural gas to 42 million cubic metres per day (mmscmd) from the Dhirubhai-1 and 3 fields. The projected was more than 60 mmscmd.

In a letter to DGH dated April 30, Reliance Senior VP (Commercial) B Ganguly said, “The company was deeply concerned and surprised by the reservoir behaviour and its deviation from what was envisaged in the Field Development Plan (laid out in 2006)."

He also wrote, “Our concern is also evident from the fact that we have moved to bring in a more experienced partner in the form of (UK's) BP, who brings with it the best deep water experience globally."

“The consultant had not even visited the field to apprise himself of the actual conditions and field performance," he said. “The conclusions are further contrary to the facts and information provided by us from time-to-time to the DGH."

The DGH wants Reliance to drill two wells by June end and around nine more by the end of current fiscal. This humungous task given to Reliance was absurd on grounds of current conditions in Bay of Bengal due to which it takes around 6 months to complete each well.

The company said that it will be discussing the reservoir performance in detail with BP and hopes to come up with most optimal solutions with BP"s help.

Read more about: ril, oil and gas, dgh
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