Biyani, Mallya, Suzlon, DLF: Easy money screwed up India Inc
CCI to hear carmakers on anti-competitive issues

Corporate Oct 15, 2012

RIL-BP JV give up 9 of 21 oil clocks on poor prospects

UK's BP has relinquished or surrendered nine out of the 21 oil and gas blocks where it has bought 30 percent stake from Reliance Industries for $7.2 billion, due to poor hydrocarbon prospects.

BP had last year bought 30 percent stake in 23 oil and gas blocks of RIL including the gas discovery areas of KG-D6 and NEC-25. The Cabinet had, however, approved of BP taking stake in 21 blocks.

Sources said that after initial assessment, RIL-BP joint venture have given up nine out of the 21 blocks.

The joint venture is currently focused on reviving the flagging eastern offshore KG-D6 fields and bringing the Mahanadi basin NEC-25 discoveries to production.

The joint venture is currently focused on reviving the flagging eastern offshore KG-D6 fields and bringing the Mahanadi basin NEC-25 discoveries to production. Reuters

Declining to comment on the relinquishment, BP India head Sashi Mukundan said: "We want to focus on quickly increasing the production and finding more oil and gas.''

He said output from the main Dhirubhai-1 and 3 (D1&D3) gas fields in KG-D6 block would increase in 2015 after the joint venture puts up additional gas compression facilities and revives some of the six closed wells.

D1&D3 fields have seen output fall from 53-54 million standard cubic meters per day achieved in March 2010 to 21-22 mmscmd currently as one-third of the wells ceased due to high water and sand ingress. Together with 5.5-6 mmscmd of output from MA field in the same area, the KG-D6 output now stands at 26.5-27 mmsmcd.

"We are still hopeful of increasing the production from D1&D3 by 2015," he said, adding that satellite fields around the main producing areas would be put beginning 2016.

Besides D1&D3 and MA, KG-D6 has 16 more gas discoveries.''

Mukundan said RIL-BP is working on sequencing the gas discoveries towards raising production.

PTI


Related Stories.