RIL, BP start production from 2nd gas field in KG D6

RIL, BP start production from 2nd gas field in KG D6

RIL: Reliance Industries and its partner BP on Monday announced the start of gas production. From the second set of new discoveries in the eastern offshore KG-D6 block.

Moreover, RIL and BP, which had commenced output from R Cluster in December last year. Started production from the Satellite Cluster, the two companies said. Satellite Cluster field comes onstream two months ahead of schedule despite Covid challenges, it said.

On the other hand, the start of production augurs well for a country that is looking to raise the share of natural gas in its energy basket from 6.2 percent currently to 15 percent by 2030, to help cut carbon emissions. RIL and BP are developing three deep-water gas developments in block KG-D6.

R Cluster, Satellite Cluster, and MJ – which together are expecting to produce around 30 million standard cubic meters per day of natural gas by 2023, meeting up to 15 percent of India’s gas demand. Reliance is the operator of the block with a 66.7 percent participating interest and BP holds the remaining 33.3 percent.

While the field is located about 60 km from the existing onshore terminal at Kakinada, in Andhra Pradesh in water depths of up to 1,850 meters. The field will produce gas from four reservoirs, utilizing a total of five wells.

Together, the R-Cluster and Satellite Cluster are expecting to contribute to about 20% of India’s current gas production, the partners said. The third KG D6 development, MJ, is expected to come onstream towards the latter half of 2022.

Shares of RIL rose as much as 3% to Rs. 1,962 apiece compared with the NSE Nifty 50 index’s 1.5% gain. In addition to their gas value chain partnership, in 2020 BP. And RIL also completed the formation of its major retail aviation fuels and mobility alliance.

The post RIL, BP start production from 2nd gas field in KG D6 appeared first on Stock Investor.

Original Article

Categorized as Stock