Business Standard: April 20, 2018
Mumbai: Mukesh Ambani's Reliance Industries (RIL) and global energy major BP said the two companies had sanctioned the second phase of integrated development for their D6 oil and gas block in the Krishna-Godavari (KG) basin.
"The companies are moving forward to develop the block's discovered deepwater gas fields in an integrated series of projects, bringing new gas production for India," it was stated. This 'satellite cluster' is the second of three projects in the KG-D6 block's integrated development.
The cluster is a dry gas development and comprises four discoveries, with five wells' subsea development at 1,700 metres depth, up to 15 km east and southeast of the producing D1-D3 fields in KG-D6. The first of the three projects, development of the 'R-Series' deepwater gas fields, was sanctioned in June 2017 and is in execution phase, with all major contracts awarded.
Analysts said the announcement was on expected lines, after the investment commitment made last year. The three projects are part of the Rs 400-billion investment the two companies committed to bring for KG-D6 last year.
The Thursday announcement says the three projects will together develop about three trillion cubic ft of discovered gas resources. "They are expected to bring a total 30-35 million cubic metres (a billion cubic ft) of gas a day in new production on stream, phased over 2020-2022."
"This development supports the country's imminent need of increasing domestic gas supply and is a firm step towards making India a gas-based economy," said Mukesh Ambani, chairman and managing director of RIL.
Bob Dudley, the BP Group's chief executive, added: "This latest investment is a further demonstration of BP's commitment to India. These new developments will produce much needed energy for India's thriving economy."
In 2011, BP took a 30 per cent stake in multiple oil and gas blocks in India that were operated by RIL, including the producing KG-D6 block. The company said since formation of this partnership in 2011, the two companies had invested Rs 130 billion ($2 bn) in deepwater exploration and production.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.