RIL- BP to Infuse $ 5 bn To Boost Gas Production In KG-D6 Fields
Filed Under: Business | Posted: 02/20/2013 at 4:09AM
Comments | Region: India
RIL (Reliance Industries Limited) and BP, British Oil Major, have announced their decision to invest $ 5bn (Rs. 27,127 crore) in the KG-D6 block, over the next three to five years. The agenda is to augment the development of gas reserves in the block and increase it to 4 trillion cubic feet.
The decision was announced following the joint meeting held in Delhi by Mukesh Ambani, Chairman and Managing Director of RIL, Bob Dudley, BP Chief Executive with M. Veerappa Moily, Petroleum Minister. The companies ensured that they would push the projects and quicken their operations as long as the government guarantees necessary clearances. RIL claimed to develop the field optimization plan that will cater to better compression and water handling and hence, work to increase the current production, starting from 2014.
David Cameron, British Prime Minister stated that BP has already emerged as the single largest British investor in India. He added that this decision by RIL and BP to invest $ 5bn in conjunction stands as a testament to the harmonious relationship between RIL and BP, exemplifying how two of British and India’s key companies can work hand in hand to boost investment, meet the growing energy needs , create job opportunities and pave the way for development.
Based on the company’s plans, it may require three to five years for them to invest in their newfound reserves in the satellite fields adjoining the current operating D1, D3 gas fields and MA oil and gas fields. Their investment plans would cater to enhancing facilities and capacities at D1, D3 and MA fields and development of satellite fields and R-series, following their approval from the government. They would also endeavor to enhance and present the architecture of KGD6 as the key hub of the east coast.
Moily opined that the gas produced from the projects will provide energy to scores of Indians, enabling them to meet their needs and effectively ease the burden on the country‘s shoulders by bringing down our import dependence. Iterating his support for the company’s investment plans, he claimed that his ministry would endeavor to offer required support and encourage such investments that would strengthen the domestic oil and gas divisions. He also ensured that they would assist these companies, helping them achieve economic feasibility.
BP has a 30% stake in Reliance Industries’ various oil and gas blocks in the country and both the companies ( RIL and BP) together have a 50: 50 joint venture, India Gas Solutions Private Limited ,to source and market gas in India.