Waning Output Prompts Reliance to Consider Closing Krishna Godavari Gas Fields

Reuters reported that India’s Reliance Industries Ltd. (BSE:500325) may need to shut down the D6 gas fields in the Krishna Godavari Basin by 2016 if output there continues to drop.

As quoted in the market news:

In response to a question on whether the consortium might have to shut the fields in 2015/16, [Oil Secretary G.C.] Chaturvedi told a news conference: “That is a fear. If it (output) keeps coming down for a longer period, it will come to an (end)… naturally.”

“Having the capacity to handle 120 mmscmd (million metric standard cubic metres per day) and running it at 10 (is) almost declaring it shut. It will not be commercially viable,” he said.

Analysts Morgan Stanley said on Monday the fields could be exhausted in five years.

Click here to read the full Reuters report.