RIL cuts offshore crude output

NEW DELHI: Reliance Industries has cut crude oil output at an offshore field by 29% after wells were unable to sustain a higher rate of production, a person familiar with the matter said. The Mumbai-based explorer has been producing about 22,000 barrels a day of crude oil from the MA field for about two months because of a drop in pressure, compared with about 31,000 barrels a day in April, the person said, declining to be identified because he isn’t authorised to speak to the media.

The oil field is part of the KG-D6 block, India’s biggest natural gas producing area, where full output of the cleaner- burning fuel has been delayed because of inadequate pressure.

The explorer is studying the pressure at the oil and gas reservoir, the person said. Manoj Warrier, a Mumbai-based spokesman for Reliance, declined to comment when reached on his mobile phone.

Oil regulator directorate general of hydrocarbons S K Srivastava didn’t answer calls made to his mobile phone seeking comment.

Reliance produced 304,349 tonnes of crude oil from the area in the three months ended June 30, according to a July 27 statement. That’s equivalent to an average 26,700 barrels a day.

Reliance expects to reach peak gas production from KG-D6 as late as 2012, at least two years behind schedule. Gas production will remain at the current level until Reliance completes a review of the reservoir and the company’s safety procedures, CFO Alok Agarwal said on July 27, declining to give a timeline for increasing output.