RIL closes KG-D6 oilfield

Reliance Industries has permanently shut down its only oilfield (MA field) in the KG-D6 block on the back of dwindling output from the reserve. This was the company’s first foray into oil and gas exploration that began in September 2008 when the field started producing oil.

“The MA (D26) field in Block KG-DWN-98/3 (KGD6), which is being operated by RIL as an operator of the joint venture consisting of RIL (60 per cent), BP (30 per cent) and Niko (10 per cent), has ceased production on September 17, 2018,” the company said in a regulatory filing.

“Production from the field had been under natural decline and facing continuous challenges because of high water production and sand ingress... and had no remaining reserves,” the company said.

RIL has till date made 19 oil and gas discoveries in the Krishna-Godavari basin. Of these, D26 or MA — the only oil discovery in the block — was the first field to start production.

“The field has cumulatively produced about 0.53 trillion cubic feet of gas and 31.4 million barrel of oil and condensate and had no remaining reserves,” the company said.

For the first quarter of the current financial year, the MA field contributed less than 0.1 per cent in terms of revenue.

This was India’s first deepwater development (water depth up to 1,250 metres), with seven wells tied back through a sub-sea production system to a floating production storage and offloading (FPSO) production facility.

The shutdown of the MA field coincides with the expiry of the current lease of an FPSO unit, which processes output from the field. “Relevant governmental agencies have already been informed,” Reliance said.

Reliance Industries Limited (RIL)