BP & RIL plan US$5 billion investment on KGD6
Reliance Industries Ltd. (RIL) and KG D6 block partner BP plan to invest US$5 billion in the deepwater gas development over the next three to five years, the supermajor announced on 19 February 2013.
A UK trade delegation including British Prime Minister David Cameron and BP Group Chief Executive Bob Dudley met with RIL’s Chairman and Managing Director Mukesh Ambani and Indian Minister of Petroleum and Natural Gas Veerappa Moily to discuss the companies’ development plans.
The plan proposed by BP and RIL will develop approximately 4 TCF of discovered natural gas reserves.
“At current international liquefied natural gas prices, it would cost more than $50 billion to import this volume of gas into India,” BP said.
BP and RIL also plan to optimize KG D6 through compression and water handling in 2014. BP also expects to begin a drilling program in the coming months to test a hydrocarbon pool below current production. BP and RIL also submitted a plan to develop R-Series and satellite fields, which is pending Indian government approval.
“The BP and RIL partnership is focused on finding more hydrocarbons and addressing the complexities of the geology along the east coast of India,” Ambani said. “We hope to significantly contribute to India’s domestic production and help the country attain energy security.”
BP said implementation of the new development plan will require the deployment of advanced skills, processes and technologies.
“The decision to join forces with Reliance Industries to invest $5 billion in the next few years into India’s gas markets reinforces how two of Britain’s and India’s leading companies can work together to invest in and supply the energy needs of the future, creating jobs and boosting prosperity,” Cameron said.
In 2011, BP agreed to take a 30% stake in 21 of RIL’s oil and gas blocks in India, including KG D6. The two companies also formed the 50-50 joint venture India Gas Solutions Private Ltd.
KG D6 is located on India’s eastern coastline inside the Krishna-Godavari Basin at water depths of 1500m. Canada's Niko Resources Ltd. holds 10% interest in the KG D6 block