Reliance Industries Ltd and BP Plc will begin development work in its flagship gas production block KG D6 in Krishna Godavari basin by the end of next year with an aim to boost natural gas production output by 30-35 million metric standard cubic meter per day, Sashi Mukundan, Head-India at BP said.
According to source, Sashi Mukundan said that the development work in KG-D6 will start by the end of 2018 and that RIL-BP have submitted field development plan for R-series satellite fields in KG-D6. RIL-BP is planning to invest about USD 1.5 billion to bring to production six satellite gas discoveries in the flagging KG-D6 block by 2022, source reported.
The plan is to develop four deep sea satellite gas finds, named D-2, 6, 19 and 22, together with two other nearby finds, D-29 and D30, in the Krishna Godavari basin block. The four satellites and the two other satellite finds (D29 and D30), R-Series and MJ gas discoveries, are the ones on which RIL and BP had in mid-June this year announced investing Rs 400 billion to reserve the flagging production from KG-D6 block. RIL-BP last week submitted to the Directorate General of Hydrocarbons (DGH) a field development plan for what are known as satellite and other satellite fields, source quoting sources with direct knowledge of the development said.
The development of the six satellite finds is being taken up together while D-34 or R-Series and D-55 (MJ) would have separate development plans. KG-D6 block is estimated to have total proven reserves at 2.65 trillion cubic feet of natural gas. However, the production at this field in the Krishna Godavari basin has been on a decline due to natural ageing of the block.
Earlier last year, the natural gas output KG-D6 fields fell 29% on-year to 24.4 billion cubic feet in the fiscal third quarter. Earlier in June, Anil Ambani led Reliance Industries Ltd said that it will invest Rs 400 billion with its partner BP Plc towards the development.
The joint venture, in which Reliance Industries holds 60% operating stake and BP Plc has 30% equity stake, has started awarding works contracts for the development of R-series gas fields. The D-34 field, which will be developed, is a dry gas field in water depths of up to 2,000 meters, 70 kilometers offshore, Dudley said.
Further, the venture plans to submit field development plans for the development of satellite fields and D-55 fields by the end of the year 2017. The renewed investments in the KG-D6 fields will reduce India’s import dependence by as much as 10% by the year 2022, the British firm’s group chief executive Bob Dudley said in July. The increased production will be equivalent to $20 billion worth of LNG imports, he said.