India's KG-D6 block holds less gas than estimated
NIKO Resources of Canada, which owns a 10 % stake in Reliance Industries’ (RIL) Krishna Godavari D6 block, has cut estimates of the proved and probable gas reserves at the KG-D6 block by 81 % to 1.93 tcf from 9.65-9.9 tcf. In 2006, RIL had scaled up the estimated reserves to 11.3 tcf and cited higher gas volumes for quadrupling investments to $ 8.8 bn from the earlier $ 2.4 bn.
RIL owns 60 % of the block and is the operator while 30 % is held by UK’s BP.
Natural gas output at KG-D6 fields has dipped to 31.33 mm cmpd after hitting a peak of 61.5 mm cmpd in June 2010. RIL had in 2006 stated that output would rise to 80 mm cmpd by 2012-13.
Production is further slated to drop to 28 mm cmpd this fiscal and to 20 mm cmpd in 2012-13, Oil Minister S Jaipal Reddy said last month.
In its ‘Reserves and Contingent Resources Update’, Niko, said the total proved plus probable natural gas reserves in its various blocks have fallen almost 51 % to 377 bn cf mainly due to lower reserves in KG-D6.
The 7,645 sq km KG-D6 Block has 19 oil and gas discoveries of which production from the MA oil find began in September 2008 and from the D1 & D3 gas discoveries in April 2009. Niko estimated that production from satellite fields would begin in 2015 and expect to increase production to 41 mm cmpd.