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Reliance Industries, which contributes 30% of Indias gas production, has announced plans to drill four new wells in the Satellite and R-Clusters of the KG-D6 block to enhance natural gas output. The company, which averaged around 27 million standard cubic meters per day (MSCMD) from its three KG-D6 clusters in FY24, anticipates an incremental recovery of about 240 billion cubic feet (BCF) of gas.
In its annual report for FY24, RIL outlined that, based on over two years of production data, it proposes to drill three additional wells in the R Cluster and one in the Satellite Cluster. This move is expected to significantly increase gas recovery from these fields.
RIL’s exploration strategy aims to identify additional gas accumulations that can be integrated with its existing world-class infrastructure, using an infrastructure-led exploration (ILX) approach. Since its inception, Block KG-D6 has set global benchmarks with 99.9% uptime and over 13 years of incident-free operations.
The company’s latest projects-R Cluster, Satellite Cluster, and MJ-are currently in production and have leveraged existing hub infrastructure to reduce costs. For FY24, the average production across these fields was approximately 27 million MSCMD of gas and 18,000 barrels per day of oil and condensate, meeting expectations.
In response to rising gas production, RIL completed three rounds of e-auctions, signing 15 MSCMD gas contracts with buyers in sectors including fertilizers, city gas distribution, and refineries. Condensate production from the MJ Field began in April 2023, with five auction rounds conducted and 12 cargo offtakes completed by March 2024.
On the exploration front, RIL has been awarded the KG-UDWHP-2018/1 (KG-UDW1) block under the OALP II licensing round, with the petroleum exploration license issued in August 2019. The company has completed a 3D seismic acquisition and processing campaign and is analyzing data from the first exploration well.
Additionally, RIL acquired Block KG-UDWHP-2022/1 (KG-UDW2) under the OALP VIII licensing round, with the contract signed in January 2024.
In coal bed methane (CBM) production, RIL operates the SP (West)–CBM–2001/1 block with over 300 wells producing an average of 0.64 MSCMD of gas. The company is executing a 40 multi-lateral horizontal well program in SP (West), marking the first horizontal wells drilled for CBM in India. Preliminary results from the 13 drilled horizontal wells, with 10 in production, are promising.
Reliance Gas Pipeline, a subsidiary of RIL, operates the 302 km Shahdol-Phulpur Pipeline, connecting CBM gas fields with the National Gas Grid and providing access to consumers nationwide. |
