RIL, BP Start Production From Second Deepwater Gas Field In KG-D6 Block
Reliance Industries Ltd. and BP Plc have started production from their second new deepwater gas field in the KG-D6 block in the east coast of India.
The Satellite Cluster field will produce gas from four reservoirs utilising a total of five wells, and is expected to reach gas production of up to 6 million standard cubic meters per day, the Mukesh Ambani-controlled oil-to-telecom conglomerate said in an exchange filing.
RIL and BP have been developing three deepwater gas developments in KG-D6 block — R Cluster, Satellite Cluster and MJ—which together are expected to produce around 30 mmscmd (1 billion cubic feet a day) of natural gas by 2023, meeting up to 15% of India’s gas demand, the filing said.
Natural gas production from R Cluster — the deepest offshore gas field in Asia, located at a water depth of more than 2,000 meters — commenced in December last year. Production from Satellite Cluster, located in water depths of up to 1,850 meters, was originally scheduled to start in mid-2021.
Together, R Cluster and Satellite Cluster are expected to contribute to about 20% of India’s current gas production. The third KG-D6 development, MJ, is expected to come onstream towards the latter half of 2022.
RIL is the operator of the KG-D6 block with a 66.67% participating interest, while BP holds 33.33%.
Shares of RIL rose as much as 3% to Rs 1,962 apiece compared with the NSE Nifty 50 index's 1.5% gain.