It is the curtain of the first deep-sea gas field in India.
NEW DELHI: Trusted industries Ltd and BP closed field D1 D3 on block KG-D6 on the Andhra coast on Monday, which eventually ran out of gas, lowering the curtains in India's remarkable deep-water debut that was pursued by the controversy since the beginning.
The joint venture is expected to re-enter the gas market by bringing three projects worth $ 5 billion in production in the same block: R cluster, Satellite cluster and MJ fields, in the middle of this year. The three projects have reserves of 3 tcf (trillion cubic feet) of gas, equivalent to 500 million barrels of oil.
Field D1 D3 was put into production in April 2009, but production soon fell dramatically due to the drop in reservoir pressure and water ingress. The production deficit left some 24,000 MW planned or built power plants stranded. This prompted accusations of gold plating and led to the federal auditor's report, first reported by TOI in June 2011, which said the government favored 3 explorers, including RIL for the KG-D6 project. That report caused several policy changes to achieve transparency.
The camp became part of the political discourse during the 2015 Delhi assembly elections on the sharp increase in the price of gas proposed by the UPA-2 just before it was voted by the BJP led by Narendra Modi.
The KG D6 block has so far produced a total of 3 TCFe, resulting in energy import savings of more than $ 30 billion. These fields also established several global benchmarks in terms of operational performance, including 99.9% uptime and 100% incident-free operations.
The RIL-BP joint venture managed to extend the life of the D1 D3 field by five years, which would otherwise have ceased production in 2015 due to the geological problems of reservoir pressure and water ingress.
The maximum production of the three new projects is expected to reach 1 BCF (billions of cubic feet) per day, which is approximately 15% of India's demand expected at that time.