Hari Bhartia puts his 10% stake in KG-OSN-2001/3 on sale-II: Treacherous geology will deter buyers
Jul 24: The eventual total investment getting the Deendayal field to full production has been pegged at around $ 4 billion. And yet the end result will be a gas production of a mere 5 mmscmd, as of now 8At the gas price now prevalent for High Pressure High Temperature fields, this investment is unlikely to be recouped. 8As of now, the equipment deployed in the field is proving to be insufficient to handle bottomhole fluid temperatures, which are as high as 460 degree Fahrenheit. 8What makes it more difficult is that the field contains many faults and there is a need to deploy multiple horizontal wells to sustain production. 8Then again, permeability and porosity are low, and due to this reason, the recovery factor is difficult to pull up even after hydro fracturing techniques are utilized 8The sulphur in the natural gas is more than the normal level, so production and processing facilities will have to withstand high sulphur content in natural gas 8It will take ONGC a long time to ramp up production to the 5 mmscmd level. 8The FDP will have to be reworked as GSPC's projection shows a slow ramp up, from 0.8 mmscmd, going up to 1.6 mmscmd, then on to 3.5 msmcmd and finally to 5 mmscmd in the third year. 8Production was meant to have started in December, 2013 but began much later in 2015. All deadlines are currently running well behind schedule. 8There is no doubt that way too much money was sunk in for way too little production.