BG India and partners Oil and Natural Gas Corp. and Reliance Industries Ltd. will invest $140 million in the Panna oil and gas field, 95 km northwest of Mumbai in 45 to 70 m of water, to target new reserves and expand current production.
The development plan includes construction and installation of two new wellhead platforms and associated infield pipelines to connect to the existing processing and compression platform. The drilling schedule will begin in 2Q 2005 and includes six horizontal wells from one platform and five horizontal wells from the other.
Implementation of the expansion program is expected to result in gross incremental recovery of 18 MMbbl and 74 bcf of gas. First production is expected in 3Q 2005.
"BG India and partners are proceeding with investment plans to target undeveloped areas of the Panna field," Nigel Shaw, CEO, BG India, said. "By applying advanced drilling techniques to extract oil and gas from the field's complex reservoir and, with gas rate management, the consortium will be able to access and develop economic reserves to realize the full potential of the field."
The two new platforms are being designed to allow future infill drilling to maximize the field's full potential. Contract awards for the new facilities will be made in April.
The Panna/Mukta and Tapti fields' enhancement project, announced in September 2003, is under way. TheEnsco 50 rig arrived on location in the Tapti field in mid-February and is drilling four re-completion wells before it moves to the Panna field to drill seven infill wells in May 2004.
The Panna field is part of the Panna/Mukta and Tapti concessions, of which, BG India holds 30% interests. ONGC holds a 40% share and Reliance 30%.