Billionaire Mukesh Ambani-led Reliance Industries and BP on Thursday announced the launch of second out of the three major projects which collectively amount to Rs 40,000 crore, for development of its flagship gas production block KG D6 in Krishna Godavari basin.
Billionaire Mukesh Ambani-led Reliance Industries and BP on Thursday announced the launch of second out of the three major projects which collectively amount to Rs 40,000 crore, for development of its flagship gas production block KG D6 in Krishna Godavari basin. This announcement In an exchange filing, RIL and BP announced the sanctioning of the ‘Satellite cluster’ project in Block KG D6 and said that 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. Notably, this announcement comes after the first of the projects, development of the ‘R-Series’ deep-water gas fields, was sanctioned in June 2017.
According to the joint release, the three projects will collectively develop a total of about 3 trillion cubic feet of discovered gas resources with a total investment of Rs 40,000 crore (US$6 billion). Further, the projects are expected to bring a total 30-35 million cubic metres (1 billion cubic feet) of gas a day new domestic gas production onstream, phased over 2020-2022. Notably, Block KG D6 participating interests are 60% for RIL (operator), 30% BP and 10% NIKO. BP had entered into partnership with RIL in 2011.
“In consonance with our announcements last year to raise domestic gas production, we are delighted to announce the on-schedule progress of the Satellite cluster in the east coast of India. This development supports the country’s imminent need of increasing domestic gas supply and is a firm step towards making India a gas-based economy.” Mukesh Ambani, Chairman and Managing Director of RIL said.
Saying that the latest investment is a further demonstration of BP’s commitment to India, Bob Dudley, BP Group Chief Executive, welcomed the investment decision. “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,” he said.
The release added that 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,” the companies said.