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RIL's Partner BP to Meet GOI on KG-D6 Ouput Concerns

  • Reliance Industries' (RIL) European partner BP has said that it will discuss plans with the Indian government to increase gas output from the KG-D6 well in which it has 30% stakes. This is the first time that BP has spoken about concerns on the falling gas output.BP officials are likely to meet the government soon to submit an integrated development plan so that it can rationalize investments and infrastructure on the project.RIL which owns 21 oil wells in the KG-D6 fields have seen natural gas output dropping to less than 35 million standard cubic meters per day after one-third of wells had to be shut due to water and sand ingress.
  • RIL had earlier intimated to the Directorate General of Hydrocarbons about the declining gas output from its KG-D6 wells from 35 million cubic metres to 22 million cubic metres. Later, the energy giant said that it is conducting a study of the entire D6 block to raise output, but now, sources say that the company feels, it would be justified to have a DGH member on Board to look into the problem.It may be recalled that RIL-BP wanted to conduct a study after gas output from the KG-D6 block started dropping after five of 18 wells in the main D1 and D3 producing areas were shut because of water and sand entering them. The company had earlier said output may drop further and hence it wants to conduct a study to revive the wells, reducing supplies to power utilities and fertilizer plants.A peak of 60 million cubic meters a day was reached in 2010 and output has slid since because of technical issues, according to the company.Reliance and BP got approval to spend $1.5 billion to develop four discoveries in a cluster separate from the

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