RIL gets Oil Min, DGH order to drill 2 wells by June

Going against the plea of Reliance Industries, govt. of India has asked the company to drill two new wells in the KG-D6 block by next month end and nine more by the end of this fiscal year to raise the output from these blocks.

Reliance Company wants to seek advice from the global expert to enhance the production in the existing wells and finding the way forward. The current output from KG-D6 block is close to 42 million standard cubic meters per day (mscmd) against the estimated 62 mscmd because of the fall in the pressure and water ingression in the wells.

Directorate General of Hydrocarbon, the technical arm of Ministry of Petroleum and Natural Gas, has given verdict against the plea and advised the company to finish drilling of 9 new wells by the fiscal ending March 2012. DGH wants the company to consider drilling in the area outside the main channel but the proposal is strongly rejected by Canada"s Niko Resources, 10% stake holder in the KG-D6 block, based on the complexity of the reservoirs and the economic constraints.