RIL, BP to Flow Gas from New KG Basin Fields by 2020
India’s Reliance Industries (RIL) and its partner BP expect first gas from new fields in offshore KG Basin by 2020, RIL chairman Mukesh Ambani said in Mumbai July 5.
“Your company, along with its joint venture partner BP, continues to optimise its India upstream business by pursuing integrated development in KG D6 Block. In these gas field developments, we will deploy many advanced technologies to start gas production in 2020 and reaching full production of 30-35mn m3/d by 2022,” Ambani said during RIL’s annual general meeting.
In April this year, RIL and BP sanctioned the development of the Satellite cluster project in KG D6 block offshore India’s east coast. The Satellite cluster is the second of three projects in the integrated development of the KG D6 block. BP and Reliance had last year announced the decision to invest an additional $6bn in the KG-D6 block.
He said that RIL’s gas marketing joint venture with BP is looking for opportunities to source and distribute gas to Indian consumers including in cities. Ambani said that RIL's coalbed methane (CBM) gas production crossed 1mn m3/d level last year and the company has started the second phase of CBM development to more than double the current production. RIL operates two CBM blocks in the state of Madhya Pradesh.
RIL is proposing a cross-border merger of Reliance Holdings USA (RHUSA) with RIL thereby integrating the US gas resources with Indian market. “I am confident that our participation in the gas economy of India will generate value in the coming years,” Ambani said. RIL initially had interests in three shale assets in the US, which the company bought during 2010 and 2013. It has sold its stake in some of those assets in recent months.