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BP and Reliance Industries Ltd (RIL) today announced the sanctioning of the ‘Satellite cluster’ project in KG-D6 block, which will entail an investment outlay of over Rs 40,000 crore (about $ 6 billion).
The companies are moving forward to develop the block’s discovered deep-water gas fields in an integrated series of projects, bringing new gas production for India.
The ‘Satellite cluster’ is the second of three projects in the KG-D6 block integrated development. The first of the projects, development of the ‘R-Series’ deep-water gas fields, was sanctioned in June 2017. Together the three projects will develop about 3 trillion cubic feet of discovered gas resources.
They expect to bring 30-35 million cubic meters (1 billion cubic feet) a day new domestic gas production onstream, phased over 2020-2022.
Mukesh Ambani, Chairman and Managing Director of RIL, said: “This development supports the country’s imminent need for increasing domestic gas supply and is a firm step towards making India a gas-based economy.”
Bob Dudley, BP Group Chief Executive, welcomed the investment decision: “This latest investment is a further demonstration of BP’s commitment to India. Through our partnership, Reliance and BP are able to develop these discovered gas resources efficiently and economically, working closely with the Government of India. These new developments will produce much needed energy for India’s thriving economy.”
The Satellites cluster is a dry gas development and comprises four discoveries with five well subsea development in 1,700 metres water depth, up to 15 kilometres east and southeast of the producing D1D3 fields in KG-D6.
The first of the KG-D6 projects to be sanctioned, the R-series project, is already in execution phase with all major contracts awarded. The Satellites cluster project will draw on execution synergies with the R-series project being developed concurrently.
India today consumes over 5 billion cubic feet a day of natural gas and aspires to double gas consumption by 2022. Gas production from the integrated development is expected to help reduce India’s import dependence and amount to over 10 per cent of the country’s projected gas demand in 2022, benefiting India and domestic consumers at large.
BP in partnership with RIL in 2011, took a 30 per cent stake in multiple oil and gas blocks in India operated by RIL, including the producing Block KG-D6. Since this partnership in 2011, the two companies have invested about Rs 13,000 crore ($2 billion) in deep-water exploration and production to date.
In addition to the D55 gas discovery announced in 2013, the partnership has combined BP’s technology and skills with RIL’s execution and operational capability to sustain production from the geologically complex reservoirs in D1D3 and D26 fields on Block KG D6.
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