BP To Assist RIL In Raising The KGD6 Output
Filed Under: Business | Posted: 09/05/2012 at 5:45AM
Comments | Region: India
BP Plc, the leading multinational Oil and Gas Company will work with RIL (Reliance Industries Limited) to push the envelope and increase the production from the KG (Krishna Godavari) D6 basin. Previously, the conglomerate also procured cutting edge technology for drilling as an attempt to increase the production. BP Plc holds a 30% stake in RIL operated fields in KGD6 basin.
Shashi Mukundan, BP Plc’s country head and regional director states that they have acquired a number of approvals indicating that things have already fallen into place. However, some are yet to be sanctioned. They intend to recoup the KGD6 production block and up the ante starting from 2013. Besides, they also aim to augment other minor fields in the block. He also confirmed that they have come to grips with the problem and have been working with the Government closely on the same.
Along with MA oil fields, they have formulated an integrated plan and created a roadmap that will leverage the efficiency of the process. They are also planning to give a face- lift to the project next year onwards. He reveals that the total gas recoverable from the KGD6 block is around 5 to 5.5 trillion cubic feet (tcf) based on their estimates.
Speaking about their future projects, he mentioned that they are tightening their strategy with respect to the import of LNG (Liquefied Natural Gas) into India. However, they will announce about the same next year. He also mentioned that they are yet to make their mind about their LNG plan next year, whether to set up an LNG terminal (east coast or west coast) or to opt for a floating terminal. However, he assured that they would surely reveal their plans regarding the same next year. A quick approval process by the Government will alleviate the problem to an extent.
The strategic alliance between Mukesh Ambani, Chairman and Managing Director of RIL and Mr. Robert Dudley, BP Group Chief Executive had BP opting for a 30% stake in 23 Oil and Gas production sharing contracts operated by the conglomerate in India. The two companies also engaged in the formation of a 50: 50 joint venture for sourcing and marketing of gas in the country.