BP Expects KG Basin Output to Revive from 2017

BP said output from the Krishna Godavari (KG) basin will start reviving from 2017 onwards as a result of a three-point programme to arrest the decline is being implemented, DNA newspaper has reported.

The British company is a 30% stakeholder in 19 blocks in the basin, Reliance Industries has 60% stake and is the operator. The remaining 10% is held by Canadian exploration major Niko Resources.

The newspaper reports that BP outlined three key initiatives which the company is committed to as part of the alliance in the KG basin.

First, it is about managing the decline of the producing fields in Block KG-D6 through compression, workovers and infrastructure projects. The second step is to progress mid-term projects for developing already discovered resources of up to 3 trillion cubic feet and the third step is to pursue new resources through re-start of exploration activities which will be initiated by drilling three wells in 2013.

These steps, the company feels, will help to revive production from the field by 2017 after bottoming out in 2016, DNA said.

The currently producing fields in the KG basin are the D1 and D3 fields which started production from Q1 of FY10 when it clocked 19 million metric standard cubic metres per day (mmscmd) against a target of 20 mmscmd.