In his first visit since BP-Reliance Industries alliance got the Government nod, BP Group Chief Executive, Mr BoB Dudley, said the two entities have set up a joint team to study options to increase D6 gas fields output.

“We already have joint teams in place in the UK and Navi Mumbai looking at options to increase production from the D6 block, evaluating the potential to add production from other blocks such as NEC 25, and developing other exploration options,” he said.

“I am confident that we will be able to increase activity and output from these efforts sooner rather than later,” Mr Dudley added.

Mr Dudley and Mr Mukesh Ambani have been meeting senior ministers of India. Decline in D6 output has been a cause of concern for the consumers, producers as well as the Government. The RIL-operated D6 block is the largest gas field in the country. The output after hitting the peak of 60 mscmd in end-2009 has been consistently dipping. Reliance is currently producing 42 mscmd from the fields. This is expected to further drop.

This would mean that gas consuming industries benefiting from the fields will have to depend more on expensive imported gas. To enhance D6 production, the operator has roped in BP, to gain from the British firm’s deepwater expertise.

The BP chief will be visiting facilities in Kakinada tomorrow and then meet the team members in Mumbai to better understand their forward plans.

Gas marketing joint venture

The two alliance partners plan to set up the new gas marketing joint venture in the next couple of months, he added.

“This will focus on three things: helping to schedule and market domestic gas production; importing and distributing LNG into India and, where necessary, looking at gaining access to or developing infrastructure positions to make this possible more efficiently,” he stated.

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