RIL, Cairn to begin gas & crude output from April

The country may see the beginning of production from two major oil & gas fields next month. While Reliance Industries (RIL) is expected to start natural gas production from its Krishna Godavari (KG) basin field in early April, while Cairn India is likely to pump out crude oil from its Barmer field in a month, a government official said. “I am told that Reliance will start production in early April,” petroleum secretary RS Pandey told mediapersons on the sidelines of an industry conference in New Delhi. Without specifying a date, he said early April could be the first week of April. Initially, RIL is expected to produce 5-10 million standard cubic meters of gas per day (mmscmd) from its D-6 block in the KG basin that will go up to 40 mmscmd in July. The gas production will peak at 80 mmscmd in the second phase of development. Mr Pandey said RIL would sign gas sale contracts with fertiliser companies soon. “I have been told by the department of fertiliser and the supplier Reliance that they have almost finalised the agreement and it will be signed in the next few days,” he said. He ruled out any change in the decision of the empowered group of ministers (EGoM) for allocating KG-D6 gas. The EGoM had decided a priority list for supply of 40 mmscmd gas from RIL’s KG basin. But the group is yet to take any decision on the supply of additional 40 mmscmd gas expected to be produced in the second phase. On crude oil production from Cairn India’s Barmer fields, Mr Pandey said: “I am told crude oil production will begin in about a month’s time in small quantities.” The government has named Mangalore Refinery & Petrochemicals (MRPL) as the buyer for the Barmer crude oil. The initial production is expected to be consumed by MRPL’s refinery. State-owned Indian Oil Corporation (IOC) is expected to take additional crude oil produced from the field. Cairn will initially produce 4,000-5,000 barrels of oil per day. The crude will be transported in trucks to the Gujarat coast and shipped to MRPL’s refinery in Mangalore.