Reliance Industries has cut estimate of natural gas reserves of its eastern offshore
KG-D6 block by a little less than 7 per cent, leaving over 6 trillion cubic feet of reserves still left to be recovered.
RIL in its annual report for 2011-12 stated that its deep sea Krishna Godavari basin block had 206.46 billion cubic meters of reserves. Of this, it transferred 56.621 bcm to BP Plc when the British firm bought 30 per cent interest in KG-D6 and 20 other blocks for $7.2 billion.
Besides, it revised the proved reserves in the area downwards by 12.418 bcm because the reservoir had not behaved the way it should have, leading to output dropping more than 40 per cent to about 34 million standard cubic meters per day over the past two years.
After the revision, transfer to BP and production during the year, RIL in the report said it closed the 2011-12 fiscal with 103.958 bcm of reserves against its 60 per cent interest in the block.
This translates into 3.67 Tcf of balance proved reserves for the equivalent of RIL's share (6.11 Tcf for the 100 per cent of area).
RIL Chairman and Managing Director
Mukesh Ambani in the letter to company shareholders said: "Production from the KG-D6 block has been adversely impacted mainly due to unforeseen reservoir complexities and water ingress in the producing fields."
"Significant steps have been taken by the joint technical teams (of RIL and BP) in assessing options for overall reservoir management based on which, an integrated plan for work-overs and additional wells can be executed, subject to necessary regulatory and government approvals," he said.
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