Reliance, BP Start Gas Production From Asia’s Deepest Project
MJ, or D55, development is the third project that RIL-BP have taken up to revive the flagging natural gas production from KG-D6 block. (Photographer: Derick E. Hingle/Bloomberg)

Reliance, BP Start Gas Production From Asia’s Deepest Project

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Reliance Industries Ltd. and its partner BP Plc of the U.K. on Friday announced the commencement of natural gas production from Asia's deepest project, putting the second wave of discoveries in the Krishna Godavari-Dhirubhai 6 block onstream.

The production from ultra-deepwater R-Cluster, the first of the three deep-sea projects Reliance-BP are developing in the eastern offshore block, started, the two firms said in a statement.

Reliance and BP are developing three deepwater gas projects in block KG-D6 -- R Cluster, Satellites Cluster and MJ, which together are expected to meet about 15% of India's gas demand by 2023.

"These projects will utilise the existing hub infrastructure in KG-D6 block," according to the statement.

Reliance is the operator of the KG-D6 block with a 66.67% participating interest and BP holds the remaining 33.33% stake.

R-Cluster is the first of the three projects to come onstream. The field is located about 60 kilometres from the existing KG-D6 control and riser platform off the Kakinada coast.

Located at a water depth of greater than 2,000 metres, it is the deepest offshore gas field in Asia. The field is expected to reach plateau gas production of about 12.9 million standard cubic metres per day in 2021.

RIL Chairman and Managing Director Mukesh Ambani said: "We are proud of our partnership with BP that combines our expertise in commissioning gas projects expeditiously, under some of the most challenging geographical and weather conditions".

This is a significant milestone in India's energy landscape, for a cleaner and greener gas-based economy. Through our deep-water infrastructure in the Krishna Godavari basin, we expect to produce gas and meet the growing clean energy requirements of the nation.
Mukesh Ambani, CMD, RIL

BP chief executive Bernard Looney said: "This start-up is another example of the possibility of our partnership with Reliance, bringing the best of both companies to help meet India's rapidly expanding energy needs."

The next project, the Satellites Cluster, is expected to come onstream in 2021, followed by the MJ project in 2022.

Peak gas production from the three fields is expected to be around 30 mmscmd by 2023, which is expected to be about 25% of India's domestic production and will help reduce the country's dependence on imported gas.

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