RIL KG basin gas output seen up to 67 mmscmd in April

Reliance Industries can raise production to 67-68 million metric standard cubic metres of gas a day by next month if it can drill additional wells

Reliance Industries Ltd (RIL), which has seen output from its KG-D6 fields fall by 15%, can raise production to 67-68 million metric standard cubic metres of gas a day (mmscmd) by next month if it can drill additional wells.

"As per the approved field development plan (FDP), gas production should rise to 67 mmscmd in April," said SK Srivastava, the director-general of the sectoral regulator, the Directorate General of Hydrocarbons.

Reliance is currently producing 50-51 mmscmd of gas from KG-DWN-98/3 block, also known as KG-D6, off the Andhra Pradesh coast. The output is made up of gas output from the Dhirubhai-1 and 3 fields, known as D1 and D3, and the D-26, or MA oilfield. Around 18 wells have been drilled and completed out of 22 development or production wells approved in Phase-I of the field development plan (FDP) for the D1 and D3 fields. Gas is being produced from 16 wells and 2 more wells are complete, but not put on production. Another 2 wells are yet to be connected to production system.

"Once all 22 wells come onstream sometime in April, gas output (from D1 and D3) will again touch 60 mmsmcd," the company said. Total investment in KG-D6 to date is $7.8 billion. As per the approved FDP, the D-1 and D-3 gas fields-which began gas production in April 2009-have a field life of 13 years, with a plateau period of six years. Peak output of 80 msmcmd is projected sometime in 2012-13.

Together with gas output from the MA field in the same block, KG-D6 production is pegged to touch 88.5 mmscmd in 2012-13.

According to the production profile prepared by the DGH, production from KG-D6 will be 86-87 mmscmd between 2013 and 2016 before dipping to 81.24 mmscmd in 2017-18. Subsequently, the output will gradually taper down to less than 40 mmscmd by 2020-21. Reliance has been forced to restrict production from the MA oil field to about 17,000 barrels per day due to high water and gas output, sources said, adding that the field was yielding more water than oil and that even 8 mmscmd of gas in comparison to oil output was considered quite high. The MA field had five oil producing wells and one gas producer.

Reliance has so far drilled 16 development or production wells in the D1 and D3 gas fields. Two exploration or probe wells have been converted into development wells. Similarly, the company has turned two wells drilled for appraising discoveries into production wells.

Of the total, 18 wells are connected to production facilities, while the remaining two are yet to be hooked up. Reliance will have to drill two more wells to meet its commitment of 22 production wells by April 2011, which would help it produce up to 60 mmscmd gas from D1 and D3 fields.

If Reliance works as per the plan, the cumulative output from the KG-D6 block will be 67-68 mmscmd in April.

Furthermore, four discoveries have been declared commercially viable, while the FDP for nine satellite finds was submitted on 14 July 2008, for approval.
The FDP for the nine satellite fields was not found techno-economically viable and Reliance submitted an Optimised FDP (OFDP) for four of these nine satellite fields on December 29, 2009. The OFDP is under evaluation by the DGH.

One discovery is under appraisal and Reliance has so far not submitted a declaration on the commerciality of two other finds.

On Wednesday, RIL ended 0.97% up at Rs993.90 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.16% to 18,469.95.

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Puravankara to invest Rs500-Rs1,000 crore in Kerala

Puravankara Projects is aiming to go aggressive in the affordable housing segment in the country and is looking at investing between Rs500 crore to Rs1,000 crore in Kerala in the next two years

The Bangalore headquartered Puravankara Projects Ltd, a leading real estate company which operates in mid and luxury segment, is aiming to go aggressive in the affordable housing segment in the country and is looking at investing between Rs500 crore to Rs1,000 crore in Kerala in all the segments in the next two years, a top official said.

The focus area of the affordable housing segment would be the Tier II and Tier III cities. Provident Housing Ltd, a wholly owned subsidiary of Puravankara, caters to the affordable budget housing segment targeting middle class and first time home buyers and already has two projects in Chennai and Bangalore, Jackbastian Kaitan Nazarath, CEO of the group said.

"We are in acquisition mode in the affordable housing segment in Kerala. Hopefully, we will have the first acquisition completed very soon," he said. The group is aiming to make its presence in 33 cities in the next five years.

Puravankara has completed the high end 'Purva Oceana' its first project in Kerala at Kochi. Spread over 1.24 the 12 storeyed building, with 96 units, the project is located on the picturesque Marine Drive waterfront area having three bedrooms apartments ranging from 2,367 to 3,278 sq ft. It has so far completed 33 residential and commercial projects and has 19 ongoing residential projects, he said. Till date, 6500 homes have been handed over to the end users.

The group began operations in Mumbai and has established its presence in Bangalore, Chennai, Coimbatore, Hyderabad, Mysore and overseasin Dubai and Colombo.

In Colombo, the group has purchased lands and the Lankan government has invited the group to build apartments for affordable segments. The group was also getting into road and bridges segment besides looking at building few hospitals.

On the future projects in Kerala, he said they have one more project at Marine Drive and two at nearby Kakkanad.

On Wednesday, Puravankara ended 0.05% down at Rs104 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.16% to 18,469.95.

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Dr Reddy’s may launch 3 new drugs in US next fiscal

Dr Reddy’s Laboratories may launch three new drugs in the US market next fiscal after the settlement of disputes with foreign players over the rights to two of them and a favourable court ruling in a third case

Pharma major Dr Reddy's Laboratories Ltd may launch three new drugs in the US market next fiscal after the settlement of disputes with foreign players over the rights to two of them and a favourable court ruling in a third case.

The company may launch Rivastigmine, an anti-mild-to-moderate Alzheimer's drug, Desloratadine, used to treat allergies and Pseudoephedrine, a nasal/sinus decongestant.

In 2008, the company entered into a settlement agreement with Novartis Pharma that involves a stipulation of dismissal of lawsuits filed in the US relating to Rivastigmine capsules sold under the trade name Exelon. Dr Reddy's inked agreements in 2009 with Schering and Sepracor of the US, which will allow the Indian drug-maker to manufacture and market generic versions of Desloratadine, starting 2012.

Similarly, Dr Reddy's got a shot in the arm after the US District Court of New Jersey recently cleared decks for the launch of the generic version of Allegra-D 24 in US. This product may also be launched next year, the company said.

The revenues from generic sales in North America stood at $301 million in the last fiscal and $287 million so far this year, it said.

On Wednesday, Dr Reddy's ended 0.87% up at Rs1,619.55 on the Bombay Stock Exchange, while the benchmark Sensex gained 0.16% to 18,469.95.

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