hemant_parikh
2nd October 2010, 12:03 PM
Reliance Said to Cut Offshore Oil Output After Drop in Pressure
Reliance Industries Ltd., India’s most valuable company, cut crude oil output at an offshore field by 29 percent after wells were unable to sustain a higher rate of production, a person familiar with the matter said.
The Mumbai-based explorer has been producing about 22,000 barrels a day of crude oil from the MA field for about two months because of a drop in pressure, compared with about 31,000 barrels a day in April, the person said, declining to be identified because he isn’t authorized to speak to the media.
The oil field is part of the KG-D6 block, India’s biggest natural gas producing area, where full output of the cleaner- burning fuel has been delayed because of inadequate pressure. Reliance shares have declined 8 percent this year compared with a 17 percent increase in the benchmark Sensitive Index.
The explorer is studying the pressure at the oil and gas reservoir, the person said. Manoj Warrier, a Mumbai-based spokesman for Reliance, declined to comment when reached on his mobile phone today. S.K. Srivastava, directorate general of hydrocarbons, the oil regulator, didn’t answer calls made to his mobile phone seeking comment.
Reliance produced 304,349 tons of crude oil from the area in the three months ended June 30, according to a July 27 statement. That’s equivalent to an average 26,700 barrels a day.
Reliance expects to reach peak gas production from KG-D6 as late as 2012, two people with knowledge of the plan said July 27, at least two years behind schedule. Gas production will remain at the current level until Reliance completes a review of the reservoir and the company’s safety procedures, Chief Financial Officer Alok Agarwal said July 27, declining to give a timeline for increasing output.
The field currently produces about 60 million cubic meters of gas a day and is expected by the company to reach peak output of 80 million cubic meters a day.
Reliance shares gained 2.2 percent to 1,007.90 rupees in Mumbai trading today compared with a 1.9 percent increase in the key Sensitive Index.
Reliance Industries Ltd., India’s most valuable company, cut crude oil output at an offshore field by 29 percent after wells were unable to sustain a higher rate of production, a person familiar with the matter said.
The Mumbai-based explorer has been producing about 22,000 barrels a day of crude oil from the MA field for about two months because of a drop in pressure, compared with about 31,000 barrels a day in April, the person said, declining to be identified because he isn’t authorized to speak to the media.
The oil field is part of the KG-D6 block, India’s biggest natural gas producing area, where full output of the cleaner- burning fuel has been delayed because of inadequate pressure. Reliance shares have declined 8 percent this year compared with a 17 percent increase in the benchmark Sensitive Index.
The explorer is studying the pressure at the oil and gas reservoir, the person said. Manoj Warrier, a Mumbai-based spokesman for Reliance, declined to comment when reached on his mobile phone today. S.K. Srivastava, directorate general of hydrocarbons, the oil regulator, didn’t answer calls made to his mobile phone seeking comment.
Reliance produced 304,349 tons of crude oil from the area in the three months ended June 30, according to a July 27 statement. That’s equivalent to an average 26,700 barrels a day.
Reliance expects to reach peak gas production from KG-D6 as late as 2012, two people with knowledge of the plan said July 27, at least two years behind schedule. Gas production will remain at the current level until Reliance completes a review of the reservoir and the company’s safety procedures, Chief Financial Officer Alok Agarwal said July 27, declining to give a timeline for increasing output.
The field currently produces about 60 million cubic meters of gas a day and is expected by the company to reach peak output of 80 million cubic meters a day.
Reliance shares gained 2.2 percent to 1,007.90 rupees in Mumbai trading today compared with a 1.9 percent increase in the key Sensitive Index.