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RIL halts some KG output as cyclone approaches

20 May 2010 Evaluate

RIL, the operator of the country’s biggest natural gas field, stopped crude oil output in the Bay of Bengal as tropical cyclone Laila strengthened, according to sources. It closed wells producing about 30,000 barrels a day of oil in the KG-D6 field starting last night for 24 to 48 hours. Gas output at the offshore field wasn’t halted.

Laila, which intensified into a severe cyclonic storm over the Bay of Bengal and approached India’s east coast, is likely to make landfall in Andhra Pradesh, a major rice-growing area, by Thursday morning. The cyclone, with sustained winds of at least 105 kms per hour, was about 150 kms east-northeast of Chennai at 11:30 am local time, the India Meteorological Department said in a statement on its website.

Gas output was unaffected because the pipes carrying the fuel to the shore are under the sea bed. Drilling in all areas off the east coast has been stopped and rigs have been moved to safe zones, RIL said in an e-mailed statement. Operations on the floating production storage and offloading vessel in KG-D6 were also suspended, RIL said, without elaborating.

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