Reliance confirms MA field shut down due to natural decline

FPSO Dhirubhai-1FPSO Dhirubhai-1; Source: Ocean Yield

India’s oil company Reliance Industries has confirmed that the MA field ceased production on September 17, 2018, due to natural decline.

This was first revealed earlier this week by Ocean Yield, the owner of the FPSO Dhirubhai-1 which had operated on the field. Reliance had the option to buy the FPSO following the expiry of a ten-year contract but decided not to exercise it. The contract expired on Wednesday, September 19, 2018.

The MA field located off the East Coast of India in Block KG-DWN-98/3 (KGD6) is operated by Reliance with a 60% interest. Its partners are BP with a 30% interest and Niko Resources with the remaining 10% interest.

Confirming the cessation of production from the MA field, Reliance said on Friday that post-cessation activities related to the field shutdown are underway.

According to the Indian company, production from the field had been under natural decline and facing continuous challenges due to high water production and sand ingress. The field has cumulatively produced about 0.53 TCF of Gas and 31.4 Million Barrel of Oil & Condensate and had no remaining reserves.

For the fist quarter of FY19, MA field contributed less than 0.1% in terms of revenue at Reliance consolidated level, the oil company said.

The Dhirubhai – 26 (D26), oil, gas and condensate deep water discovery was made in 2006. The discovery was developed and put on production in September 2008. This was India’s first deep water development (water depth up to 1,250 meters), with seven wells tied back through a subsea production system to a purpose built, state of the art disconnectable turret moored FPSO production unit.

Reliance also said that relevant governmental agencies have already been informed.

When it comes to the FPSO’s future and employment opportunity outside India, Ocean Yield said earlier this week it had been awarded a Front End Engineering Design (FEED) study for the potential use of the FPSO. The study is estimated to be completed during 4Q 2018.

Meanwhile, Ocean Yield will consider recording an impairment related to the FPSO in 3Q 2018 between $0-50 million.

Offshore Energy Today Staff

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