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RIL KG basin gas output seen up to 67mmscmd in April 2011
RIL, which has seen output from its prolific KG-D6 fields fall by 15%, can raise production
to 67–68mmscmd by next month if it can drill additional wells. As per the approved field
development plan (FDP), gas production should rise to 67mmscmd in April. RIL is
currently producing 50–51mmscmd of gas from KG-DWN-98/3 block, also known as
KG-D6, off the Andhra Pradesh coast. The output is lower than the 60mmscmd average
production in the April–June quarter of 2010. The output is made up of gas output from
the D1, D3 and the D26 or MA oilfields. D1 and D3 have seen output fall from
53–54mmscmd in mid-2010 to 42–43mmscmd at present. The MA oilfield in the same
block is producing about 8mmscmd of associated gas. Together, the current output from
KG-D6 stands at 50–51mmscmd.
So far, 18 wells have been drilled and completed, out of 22 development or production
wells approved in Phase-I of the FDP for D1 and D3 fields. Gas is being produced from
16 wells and two more wells are complete but not put on production. Another two wells
are yet to be connected to the production system. RIL needs to drill two more wells by
April, but it needs to be seen if the company can actually complete the task in less than a
month. Once all 22 wells come on stream sometime in April, gas output (from D1 and
D3) will again touch 60mmsmcd. Together with gas output from the MA field in the same
block, KG-D6 production is pegged to touch 88.5mmscmd in 2012–13, says DGH.
The company is currently selling 14mmscmd of gas to fertiliser plants, 24mmscmd to
power plants and the remaining 13mmscmd to other sectors such as sponge iron plants,
LPG, city gas distribution (CGD), petrochemical plants and refineries. Production ramp up
at the right time is a positive development for the company. We maintain Buy on RIL with
a target price of `1,160.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
RIL KG basin gas output seen up to 67mmscmd in April 2011
RIL, which has seen output from its prolific KG-D6 fields fall by 15%, can raise production
to 67–68mmscmd by next month if it can drill additional wells. As per the approved field
development plan (FDP), gas production should rise to 67mmscmd in April. RIL is
currently producing 50–51mmscmd of gas from KG-DWN-98/3 block, also known as
KG-D6, off the Andhra Pradesh coast. The output is lower than the 60mmscmd average
production in the April–June quarter of 2010. The output is made up of gas output from
the D1, D3 and the D26 or MA oilfields. D1 and D3 have seen output fall from
53–54mmscmd in mid-2010 to 42–43mmscmd at present. The MA oilfield in the same
block is producing about 8mmscmd of associated gas. Together, the current output from
KG-D6 stands at 50–51mmscmd.
So far, 18 wells have been drilled and completed, out of 22 development or production
wells approved in Phase-I of the FDP for D1 and D3 fields. Gas is being produced from
16 wells and two more wells are complete but not put on production. Another two wells
are yet to be connected to the production system. RIL needs to drill two more wells by
April, but it needs to be seen if the company can actually complete the task in less than a
month. Once all 22 wells come on stream sometime in April, gas output (from D1 and
D3) will again touch 60mmsmcd. Together with gas output from the MA field in the same
block, KG-D6 production is pegged to touch 88.5mmscmd in 2012–13, says DGH.
The company is currently selling 14mmscmd of gas to fertiliser plants, 24mmscmd to
power plants and the remaining 13mmscmd to other sectors such as sponge iron plants,
LPG, city gas distribution (CGD), petrochemical plants and refineries. Production ramp up
at the right time is a positive development for the company. We maintain Buy on RIL with
a target price of `1,160.
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