BP and Reliance Industries Limited (RIL) have announced the sanctioning of the ‘Satellite cluster’ project in Block KG D6.
The ‘Satellite cluster’ is the second of three projects in the Block KG D6 integrated development, the companies said in a statement.
Together, the three projects will develop a total of about 3 trillion cubic feet of discovered gas resources with a total investment of ₹40,000 crore ($6 billion). They are expected to bring a total 30-35 million cubic metres (1 billion cubic feet) of a day new domestic gas production onstream, phased over 2020-2022.
According to the statement, 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 first of the projects, development of the ‘R-Series’ deep-water gas fields, was sanctioned in June 2017.
Mukesh Ambani, Chairman and Managing Director of RIL, said: “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.”
Speaking in London on Thursday, 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.”
According to the companies, Satellites cluster is a dry gas development and comprises four discoveries with five well sub-sea development in 1700 metres water depth, up to 15 kilometres east and southeast of the producing D1D3 fields in KG D6.
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% of the country’s projected gas demand in 2022, benefiting India and domestic consumers at large, the companies noted.
In 2011, BP took a 30% stake in multiple oil and gas blocks in India operated by RIL, including the producing Block KGD6. Block KGD6 participating interests are 60% RIL (operator), 30% BP and 10% NIKO.
Since formation of this partnership in 2011, the two companies have invested around ₹13,000 crore ($2 billion) in deep-water exploration and production to date.
