Reliance to start D6 block oil production by month end

New Delhi: Reliance Industries is likely to restart crude oil production from its Eastern Offshore KG-D6 block by the month-end, while natural gas will start flowing next month, oil regulator DGH said on Monday.

Reliance, which had started crude oil production from the predominantly gas-rich KG-D6 block in September 2008, had on December 9 shut the oil field following equipment failure.

“In our assessment, crude oil productions should start in next 15-20 days. You can say it will start flowing by month end,'' DGH Director General V K Sibal told reporters on sidelines of the Petrotech Conference here. Reliance was producing 10,000 to 12, 000 barrels per day when the production was stopped.

Mr Sibal said natural gas from KG-D6 would start “any time between mid-February to end-February. We estimate Reliance will be able to raise the output to 30-40 million standard cubic metres per day within a short time,'' he said.

Reliance CEO and President of Oil and Gas PMS Prasad, on January 9, had written to the oil ministry stating that gas output from KG-DWN-98/3 or KG D-6 fields in Krishna Godavery basin of the east coast would start by next month-end “subject to weather an d marine conditions''.

In response, Prasad wrote to the ministry that Reliance would be ready for gas production by end-February “subject to weather and marine conditions.''