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This paper reviews the reservoir management strategy developed to improve liquid productivity in the giant Arun gas field. The strategy has resuited from the synergistic effort of all engineering, operational and geological departments in the company. The objectives are to meet the LNG and LPG sales contracts, optimize condensate production and to improve ultimate recovery.The formulation of the reservoir management strategy has been based on the results of the Arun compositional simulation studies and observed field performance. The simulation studies predict that Arun will meet the LNG sales contracts through 2006, but LPG production will, under the historical production scheme, fall short of contractual commitments. Gravity override and breakthrough of the re-injected gas has been identified as the primary cause for LPG and condensate production decline.The Arun Reservoir Management Plan includes the following activities :1. Redistribute injection gas.2. Balanced production.3. Lower zone completions.4. Eastern flank appraisal.5. Update reservoir description.Early results are encouraging. Reservoir performance monitoring is being emphasized to optimize the strategy.