Thursday, November 7, 2013

Reliance Cites Geological Surprises In Krishna Godavari Basin

My friend S.C.N Jatar, former CMD Oil India and ONGC Videsh writes about the suspicion that Reliance overstated reservoir potential in the KG -D6 field of the Krishna Godavari basin.

“Geological surprise” is cited as the cause of Reliance’s production shortfall. KG-D6 block commenced production in September 2008 with 0.58 million standard cubic meters per day (mmscmd) reaching a peak of 69.43 in March 2010 and then declined to 13 mmscmd currently. Reliance attributed the decline to substantial variance from prediction in reservoir behaviour, higher than envisaged pressure decline and unpredicted early water production in some wells. Was there a geological surprise? In an article published 10 years ago in Business Standard on January 13, 2003, I wrote, “Producing even 40 mmscmd for 10 years will need an unusually large number of wells....” The latest thinking on such reservoirs is that one can expect unpleasant surprises even after 3D surveys confirm the ‘structure’ because it cannot confirm the ‘reservoir’. I had then stressed: “There is a big question mark over the projected recoverable reserves of the Dhirubhai fields.”

Rest of the article here

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