RIL-BP to de­velop deep­est gas find in KG-D6 by 2022

DNA (Daily News & Analysis) Mumbai Edition - - FRONT PAGE - —PTI

New Delhi: Re­liance In­dus­tries (RIL) and its part­ner BP Plc of UK an­nounced in­vest­ment sanc­tion for de­vel­op­ment of their deep­est nat­u­ral gas dis­cov­ery in the flag­ging KG-D6 block by 2022.

Re­liance-bp will de­velop the MJ, or D-55, gas find in sync with the pre­vi­ously ap­proved projects to de­velop two sets of dis­cov­er­ies in the block that will to­gether add 30-35 mil­lion stan­dard cu­bic me­tres per day of nat­u­ral gas pro­duc­tion in phases.

MJ gas find, lo­cated about 2,000 me­tres di­rectly be­low the cur­rently pro­duc­ing Dhirub­hai-1 and 3 (D1 and D3) fields in the KG-D6 block, is es­ti­mated to hold a min­i­mum of 0.988 tril­lion cu­bic feet (Tcf) of con­tin­gent re­source.

“MJ is the third of three new projects in the Block KG-D6 in­te­grated de­vel­op­ment plan and its ap­proval fol­lows sanc­tions for the de­vel­op­ment of ‘R-se­ries’ deep­wa­ter gas field in June 2017 and for the Satel­lites Clus­ter in April 2018,” the com­pany said in a press state­ment.

Re­liance-bp did not give the in­di­vid­ual cost of the three projects but said they

to­gether will cost an es­ti­mated Rs 35,000 crore.

The three projects will de­velop a to­tal of about 3 Tcf of dis­cov­ered gas re­sources. “These projects to­gether, when fully de­vel­oped, will bring about 1 bil­lion cu­bic feet a day of new do­mes­tic gas on­stream, phased over 2020-2022,” the state­ment said.

Re­liance and BP had in June 2017 an­nounced an in­vest­ment of up to Rs 40,000 crore in the three sets of dis­cov­er­ies to re­verse the flag­ging pro­duc­tion in KGD6 block. These finds were ex­pected to bring a to­tal 3035 mil­lion cu­bic me­tres (1 bil­lion cu­bic feet) of gas a day on­stream, phased over 2020-22.

R-clus­ter will be first to come on stream, de­liv­er­ing gas in the sec­ond half of 2020-21 fis­cal. The sec­ond set is called the Satel­lite Clus­ter. MJ is the third of these fields.

The two firms have been able to save up to $1.5 bil­lion of the cost by us­ing ex­ist­ing in­fra­struc­ture avail­able in KG-D6 block.

A float­ing pro­duc­tion sys­tem will be in­stalled at MJ which will sep­a­rate the gas and pipe it to the main trunk lines that take gas from ex­ist­ing fields to on­shore.

As much as 70% of the in­fra­struc­ture Re­liance set up more than a decade back to bring In­dia’s first deepsea fields - Dhirub­hai-1 and 3 (D1&D3) on to pro­duc­tion are be­ing utilised to pro­duce gas from the three sets of new dis­cov­er­ies.

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