RIL-BP get nod to invest $3.18 bn in R-Series gas field

New Delhi: Reliance Industries and its partner BP Plc today won approval to invest $3.18 billion in the R-Series gas field in the flagging KG-D6 block.

RIL-BP plan to quickly bring satellite fields in the KG-D6 block to production to help reverse the decline in output.

The block oversight committee, called Management Committee (MC), headed by upstream regulator DGH, approved the plans of RIL and its partners BP and Niko Resources to produce 13-15 million standard cubic meters per day of gas for 13 years from D-34 discovery in the KG-DWN-98/3 or KG-D6 block, sources privy to the development said.

[caption id=“attachment_1069107” align=“alignright” width=“380”]  Reuters[/caption]

The planned output from D-34, which is estimated to hold an in-place reserve of 2.2 trillion cubic feet, is equivalent to the combined current production from Dhirubhai-1 and 3 (D1&D3) gas field and MA field in the KG-D6 block.

More from Business

Hyundai India’s Rs 27,870 crore IPO oversubscribed by 2.28X, largely driven by institutional investors How Indian fintech startups are driving Malaysia’s UPI-like digital payments revolution

RIL, the operator of KG-D6 block with 60 per cent interest, had on January 30 submitted the Field Development Plan (FDP) for D-34 field to DGH.

Sources said the DGH, after examination, trimmed down the recoverable reserves to 1.191 Tcf from 1.413 Tcf estimated by the operator.

Also, the peak production of 14.9 mmscmd estimated by RIL was brought down to 12.9 mmscmd by the DGH.

The Dhirubhai-34 or D-34 gas discovery in the southern part of KG-D6 block in Krishna-Godavari basin was notified in May 2007. The find was declared commercially viable by MC in November 2011.

Impact Shorts

More Shorts

Chennai Ranks #1 in Challan Checks: ACKO Insights for Smarter Car and Two Wheeler Insurance Decisions

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

The RIL has so far made 19 gas discoveries and 1 oil find in the KG-D6 block. Of these, D1&D3 gas fields were brought to production in April 2009, while MA oilfield began pumping oil in September 2008.

D-34 is part of what is known as the R-Cluster of discoveries. The R-Cluster comprises four discoveries – D-29, 30, 31 and 34. Of these, only D-34 has so far been declared commercially viable while the Declaration of Commerciality (DoC) of others has been refused in absence of DGH prescribed tests confirming the discoveries.

RIL estimates that output from KG-D6 can reach up to 60 mmscmd by 2019 when all of the satellite fields are put into production.

The MC had last year approved $1.529 billion investment in four satellite fields that can produce 10 mmscmd. Investment plans for rest are under consideration, sources added.

PTI