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India’s first deepwater gas field, D1/D3, stops production

India’s first deepwater gas field, D1/D3, ceased production after a $1 billion investment and technological intervention by Reliance Industries and its partner BP
New Delhi: India’s first deepwater gas field, D1/D3, ceased production on Monday after a $1 billion investment and technological intervention by Reliance Industries and its partner BP Plc of UK. The two fields in Block KG D6 (KG-DWN-98/3) located in the Bay of Bengal, were India’s first deepwater gas field to be put on production in April 2009. The intervention had extended the life span of the dwindling fields by four years, said sources.

D1/D3 field output had peaked in 2010

The D1/D3 field output had peaked in 2010 when it was producing over 61 million standard cubic meters per day. However, from there on, it had been on the decline as sand and water ingress forced wells to shut down one after the other. In the last quarter, the field had produced just 1.5 mmscmd. However, at its peak, it was India’s biggest gas field. Only three out of 18 wells drilled on the fields were on production.

Reliance had kept the wells flowing for the last four years

Through the use of a combination of complex technologies, Reliance-BP had kept the wells flowing at D1/D3 for the last four years. Reliance had till date made 19 oil and gas discoveries in the Krishna Godavari basin. KG-D6 produced about 3 trillion cubic feet equivalent, saving about $30 billion in energy imports.

What’s next?

According to sources, the field infrastructure would now be utilised to bring on stream the next set of fields in the block. Reliance-BP has committed an investment of $5 billion towards monetising another 3 trillion cubic feet equivalent (about 500 Million Barrels of Oil equivalent) reserves from three projects — R cluster, Satellite Cluster and MJ fields. Upon commissioning, the three fields are expected to deliver a peak production of 1 billion cubic feet per day which is about 20 per cent of the current domestic production.