RIL starts drilling work at one of KG-D6 block’s satellite fields
Reliance Industries' KG-D6 block, which has long been suffering criticism for the falling output, is expected to start increase production another 10 million metric standard cubic meters per day (mmscmd).
The block's operators, viz. RIL, BP and Niko Resources, on Sunday started a new drilling work at one of the satellite fields in the D6 block on the east coast. On the completion of the development activity, the field is expected to increase the block's production by 10 mmscmd.
However, the development work in this satellite area of the block is expected will not complete before 2015-16.
The block's operators have long been facing criticism for the falling production. Many alleged that RIL and its partners willingly lowered the production in order to take advantage of higher prices in future.
Currently the block's D1, D3 and MA fields are producing 23 mmscmd, considerably lower than a peak of 60 mmscmd in late 2009.
The operator will be able to produce an estimated of additional 30 mmscmd if all the four satellite fields along with the R-Series in the D6 block are put in production mode.
Meanwhile, the Comptroller & Auditor General (CAG) is waiting for the government's decision on the sort of audit that it would do in case of KG-D6 block. The national auditor has asked the government not to give a nod to RIL's D6 investment plans till it agrees to an unconditional audit.