RIL, BP to invest $5 bn in flagging KG-D6 gas fields

Feb 20 2013, 11:38 IST
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SummaryReliance Industries and BP Plc, Europe's 2nd biggest oil co, will invest $5 billion to get gas flowing again.

in work would require deployment of advanced skills, processes and technologies to produce gas from water depths of more than 1,500 metres.

"RIL and BP are confident that development of the existing discoveries, together with exploration prospects in KG D6 have the potential to enhance domestic production significantly," it said.

In an historic partnership with RIL in 2011, BP took a 30 per cent stake in multiple oil and gas blocks in India, including the producing KG D6 block and formed a 50:50 joint venture to source and market gas in India - India Gas Solutions Pvt Ltd.

RIL-BP said investment plans for the R-Series and Satellite fields in KG-D6 block have been submitted to the Government for approval and these projects would add incremental production from 2017 and beyond.

Also, the two are drilling a prospect in the coming months to test a possible hydrocarbon pool below the current producing field. "If successful, this could provide additional reserves and be brought to production, potentially utilising the existing infrastructure," it said.

In addition, the KG D6 infrastructure has the potential to be a critical 'hub for the east coast of India.

By the end of 2012, fields in the KG D6 block had produced 2 tcf of gas and 22 million barrels of oil, which would have cost more than USD 35 billion to import into India at current imported crude oil and LNG prices.

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