To reverse the decline in output in the KG-D6 basin, RIL and BP (British Petroleum) are planning to bring satellite fields in the KG-D6 block into production. They are investing $1.529 billion four satellite fields which can produce 10 mmscmd. D34 and these satellite fields are expected to begin production sometime in 2017-18.
RIL plans to drill 8 development wells on D34 and transport the gas extracted here using pipes to the D1-D3 fields. This will then be transported onshore. RIL, in a statement said the estimated capex is $3.2 billion before taxes/duties. The gas production rate is estimated up to 12 mmscmd in the next four years.
RIL had submitted the Field Development Plan (FDP) for the D34 field to DGH (Director General of Hydrocarbons) on January 30th. DGH after examination trimmed down the recoverable reserves to 1.191 trillion cubic feet from 1.413 trillion cubic feet estimated by RIL. Also, the peak output was lowered from 14.9 mmscmd estimated by RIL.
The Dhirubhai-34 or D-34 gas discovery in the southern part of KG-D6 block in Krishna Godavari basin was notified in May 2007. The find was declared commercially viable by MC in November 2011.
RIL has so far made 19 gas discoveries and 1 oil find in the KG-D6 block. Of these, D1&D3 gas fields were brought to production in April 2009 while MA oilfield began pumping oil in September 2008.
The D34 gas field is a part of what?s known as the R-Cluster of discoveries. This consists of four discoveries ? D29, D30, D31 and D34. Only D34 has so far been declared commercially viable while the Declaration of Commerciality (DoC) of others has been refused in absence of DGH prescribed tests confirming the discoveries.
RIL estimates that total output from all of the satellite fields from KG-D6 can reach up to 60 mmscmd by 2019.