Moily concerned over gas production shortage
Union Minister of Petroleum and Natural Gas M Veerappa Moily Tuesday in a written reply to the Rajya Sabha said that the average gas production from KG-DWN-98/3 (KG-D6) block during the current year (2012-13 upto October, 2012) was about 29.81 Million Standard Cubic Meter Per Day (MMSCMD) as against 86.73 MMSCMD approved in the Field Development Plans (FDPs) of D1, D3 and MA fields in this block, which are currently on production.
Moily said that the decline in gas production from KG-D6 block is because a total 18 gas producer wells in D1 and D3 fields, 6 wells have ceased to produce gas due to water loading/sand ingress in wellbores.
Moreover, out of a 6 oil/gas producer wells in MA field, 2 oil/gas producers have ceased to flow oil/gas due to water ingress in wellbores.
Non drilling of the required number of gas producer wells in D1 and D3 fields by the Contractor in line with the Addendum to Initial Development Plan (AIDP) approved by the Management Committee (MC).
However, the contractor said that considering the reservoir behavior based on existing wells in main channel area, as well as the reservoir characteristics in overbank areas of D1 and D3 fields, any additional wells in D1 and D3 fields, may not help improve either production rate or recovery.
The reasons for less gas production as compared to AIDP of D1 and D3 fields is substantial variance in reservoir behavior and character has been observed vis-à-vis the prediction, and there seem to be reservoir constraints in achieving the gas production rates.
The contractor also noted that pressure decline is several times higher than originally envisaged and early water production in some of the wells was not predicted in initial reservoir simulations, though overall field water production is small.
Moily asserted that government have not accepted the contention of the contractor and have ordered proportionate disallowance of cost of production facilities amounting to USUSD 1.005 billon for not fully implementing approved AIDP.
Reliance Industries Limited (RIL) has initiated arbitration proceedings on the dis-allowance and government of India have also appointed an arbitrator.