RIL shuts down oil production at KG basin

Reliance Industries Ltd (RIL) has once again shut down crude oil production at its predominantly gas-rich KG-D6 block to hook up more wells that will raise the output to a peak of 40,000 barrels per day. Reliance shut down production at the MA field on the midnight of March 22 for 45 days to connect more oils that will raise the output, a source said. The MA field was producing about 18,000 barrels per day of oil from three wells when it was shut down. Two-three more wells would be hooked up in the planned shutdown period. "Output is expected to rise to 40,000 bpd before the end of the April-June quarter," the source said. The Reliance spokesperson did not return calls for comments. The MA field in KG-D6 off the Andhra coast, which began pumping out oil in September 2008, had produced 7,90,000 barrels of oil till December 9 last year, when output ceased due to equipment failure. It had resumed production earlier this month after the three-month shutdown. RIL, the source said, sold a second cargo from the MA field to Chennai Petroleum Corp Ltd (CPCL). A 4,50,000-barrel cargo was delivered to CPCL's refinery near Chennai last week. The billionaire Mukesh Ambani-run firm had sold the first cargo of over 4,30,000 barrels of oil to Hindustan Petroleum Corp Ltd's Vizag refinery in November.