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BP withdraws from 9 blocks

BP withdraws from 9 blocks
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After initial assessment, UK’s BP decided to withdraw from 9 oil and gas blocks in which it bought stake from Reliance Industries (RIL).

The company relinquished these blocks citing poor hydrocarbon prospects. Last year, BP bought 30 per cent stake from Reliance Industries for $7.2 billion in a total of 23 oil and gas blocks including the gas discovery areas of KG-D6 and NEC-25.

The cabinet had however approved of BP taking stake in 21. RIL-BP joint venture is currently focused on reviving the flagging eastern offshore KG- 6 fields and bringing the Mahanadi basin NEC-25 discoveries to production.

Output from the main Dhirubhai-1 and 3 (D1&D3) gas fields in KG-D6 block would increase in 2015 after the joint venture puts up additional gas compression facilities and revives some of the six closed wells.

D1&D3 fields have seen output fall from 53-54 million standard cubic meters per day achieved in March 2010 to 21-22 mmscmd currently as one-third of the wells ceased owing to high water and sand ingress. Together with 5.5-6 mmscmd of output from MA field in the same area, the KG-D6 is currently 26.5-27 mmsmcd.

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