RIL and BP chalk out plans to increase KG-D6 output by 2014

<p>Mukesh Ambani led Reliance Industries Limited (RIL), with technical assistance from BP Plc, is looking to reverse the slump in the output of KG-D6 gas field and boost production within the next three years. Mukesh Ambani met with BP’s CEO Bob Dudley on his two day visit to India, and discussed the likely procedures the venture partners could follow to increase KG-D6’s output.</p>
<p>Mukesh Ambani and Bob Dudley met with commerce minister Anand Sharma and petroleum minister S. Jaipal Reddy and oil secretary G.C. Chaturvedi and advocated for an early government nod to develop satellite fields in the KG-D6 block that would help reverse the spate of falling natural gas output from the prolific oil and gas acreage. Together with 7.4 mmscmd from the MA oilfield in the same block, the total gas production from KG-D6 at present is 43.9 mmscmd, as against being 80mmscmd.</p>
<p>Tests by Reliance have shown that gas-bearing layers of sand in the two main producing areas of KG-D6 block are thinner than initially estimated and extraction may require costlier drilling techniques. Satellite fields in the KG-D6 block and discoveries, also known as the ‘R-Series’, together are estimated to have the potential to produce as much as 35 million cubic meters a day of gas. Reliance has already submitted its plan to invest approximately $1.5 billion in developing four satellite fields around D1 and D3 to produce up to 10 mmscmd of gas by 2016. Now, both BP and RIL are working with the government to get additional satellite and the R series reservoirs sanctioned at the earliest so as to begin the process of engineering and, by 2014, get the production of gas rising from KG-D6. The partners hope to get this approval within the year.</p>
<p>Bob Dudley has expressed that KG-D6 fields have the necessary resources to bring about the production level to anticipated 80 mmscmd. Calling D-6 a ‘golden’ block, Dudley opined that the block certainly faces many complexities, which, as a result, call for high technology and high risks. Citing KG-D6’s satellite fields to be economic, Dudley assured that BP and RIL will work towards making the fields economic.</p>