DGH asks RIL to drill more gas wells in KG-D6

Posted By: Religare
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DGH asks RIL to drill more gas wells in KG-D6
Niko Resource"s gas interests in India are in trouble. Niko Resources had with its Indian partner Reliance Industries Limited (RIL) committed to drilling 31 wells on Dhirubhai-1 and 3 fields in the KG-D6 block by April 2012 to raise output to 80 million standard cubic metres per day (mscmd).

However, RIL, which is running the field, is currently producing only 40 mscmd from 18 out of the 20 wells drilled on D1 and D3 fields. The DGH claims output would have 61.88 mscd if RIL had drilled its committed 22 wells, as opposed to 20.

The Petroleum Ministry is currently in a tussle with RIL over the fall in output, though RIL claims it is because of falling pressure at its Eastern offshore KG-D6. The ministry does not agree.

“RIL will have to come up with a proposal to drill more wells. DGH wanted the company to drill wells in outer area of the field and not on the main channel which is facing declining pressure,'' DGH Director General S. K Srivastava said.

Read more about: ril, dgh, oil and gas
Story first published: Wednesday, May 4, 2011, 9:30 [IST]
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