Minister of State for Petroleum Panabaaka Lakshmi informed Lok Sabha that the actual cumulative natural gas production at Reliance Industries' (RIL) D-1, D-3 fields of KG D6 Block up to March 31, 2012, was 1.584 trillion cubic feet against the projected 2.030 trillion cubic feet.
The decline in output in 2011-12 is attributed to water or sand ingress in six out of the total 18 gas producing wells in the D-1 and D-3 fields.
The government received $78.88 million as penalty for failing to meet its commitments under the production sharing contract over the last three years (2009-10 to 2011-12), she said.
Also, out of the six oil and gas producing wells in MA fields in the block, two had ceased to flow oil or gas because of water ingress.
Another reason for the output not improving is the non-drilling of the required number of wells in D-1 and D-3 fields by the contractor in line with the addendum to the initial field development plan approved by the block management committee. These reasons are cited in a report of the Directorate-General of Hydrocarbons.
Lakshmi said that RIL had attributed various reasons for reduction in reserves from the fields, such as production performance, pressure decline, early water encroachment, reduced contribution from the sands outside the main channel areas, and geological models.