Reliance Industries will take more time to ramp up D6 output

Reliance Industries Ltd (RIL) is likely to take more time for ramping up natural gas production from its D6 block in Krishna-Godavari basin from the current production level of 55 million metric standard cubic metres per day (mmscmd).

The company is currently engaged in a study for assessing the key factors including the health of the wells before ramping up the production.

Though the company had expressed its readiness to ramp up the production depending on the demand in the market, it is said that it has been facing difficulties in handling the production in two of its fields hence going slow on the ramp-up.

“The current output is at about 55 mmscmd. The multifold scientific study is on and we will get a clear picture on the production ramp up in D6 only after the assessment is complete,” R Suresh, senior vice-president, gas business of RIL, said on the sidelines of a programme organised by CII on natural gas.

As part of the ramp-up, the company would also set the new production targets only after the study is complete. In fact, the company’s production was at its peak of about 60 mmscmd till recently and the production dwindled due to technical issues to 55 mmscmd. Reliance has been operating 18 wells for gas production and it would drill another two wells for taking the production to the earlier peak of 60 mmscmd.

“It is a large reservoir. We should reach the optimal output on a study basis. We have informed the government that it will take longer period for assessment,” Suresh said.

Meanwhile, the petroleum regulator is likely to take a tough stand on the delay on part of the RIL in laying a pipeline from Kakinada to Haldia for transporting the gas.

The Petroleum and Natural Gas Regulatory Board (PNGRB) had earlier issued notices to RIL seeking an explanation on the delay and the board’s chairman L Mansingh said that the company had filed its reply.

“It is chicken and egg situation. Unless and until additional gas is available laying pipeline would not be a wise thing. That is their (Reliance) stand. Unless there is no pipeline, the gas will not come. If you have pipeline you can pull in more gas. Our general stand is irrespective of who has been authorised you cannot take that authorization and prevent others from doing it. You do it or if somebody is willing to invest we will grant authorisation,” Mansingh said.

The ministry of petroleum and natural gas in 2007 had issued an authorisation to Reliance Gas Transport for the 1100 km gas pipeline.

On this issue, Suresh said, “Our people are in touch with PNGRB. These things require lot of investment with long gestation period. It does not come all of a sudden. We have to cover up lot of areas before the pipeline is laid. It is an authorized pipeline and we will stick to the plan.”