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    First Gas from India's R-Cluster Field by June: Reliance

Summary

The first gas was expected in May but has been delayed due to the ongoing lockdown in India.

by: Shardul Sharma

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Asia/Oceania, Top Stories, Asia/Oceania, Premium, Security of Supply, India

First Gas from India's R-Cluster Field by June: Reliance

Reliance Industries (RIL) and its partner BP are expected to produce first gas from the R-Cluster field in the offshore Krishna Godavari basin (KG basin) by June 2020, RIL said in an investor presentation on May 1 post its Q4 (Jan-Mar) earnings. The first gas was expected in May but has been delayed due to the ongoing lockdown in India.

In 2017, RIL and BP announced they will invest an additional $6bn in the KG-D6 block off the east coast of India over the next three to five years to develop three projects - R-Cluster, Satellite Cluster and MJ development projects. RIL said it expects to achieve a peak output of around 28mn m3/day by 2024 when all three projects are online.

Meanwhile, RIL said revenue from the oil and gas segment during Q4 stood at rupee 6.25bn, down 41.5% yr/yr owing to a decline in volumes and realised prices. Domestic production was lower at 4.1bn ft3, down 67.6% yr/yr while production in US shale operations increased by 14.4% yr/yr to 23.9bn ft3. For the 12 months to March 31, oil and gas revenue decreased by 35.8% yr/yr to rupees 32.11bn ($420mn).