In order to increase the current production capacity of its KG-D6 fields, Reliance Industries Limited (RIL) is trying to bring new fields on production. According to official sources, RIL and its partners BP Plcof UK and Niko Resources are working to produce 13-15 million standard cubic metres per day (mmscmd) of gas for 13 years from D-34 discovery in the KG-DWN-98/3 or KG-D6 block. For the same purpose, the company is planning to invest $3.18 billion in R-Series gas field in the flagging KG-D6 block. According to estimation, the planned output from D-34 would be about 2.2 trillion cubic feet. This production capacity is equivalent to the combined current production from Dhirubhai-1 and 3 (D1 & D3) gas field and MA field in the KG-D6 block.
This R-cluster of discoveries comprise of four blocks namely-D-29, 30, 31 and 34. Out of these, only D-34 has been declared as commercially viable. This gas discovery located in the Southern part of KG-D6 block in Krishna-Godaveri basin was notified in May 2007 and was declared commercially viable in November 2011.The Declaration of Commerciality (DoC) for other fields will be announced soon. In January 2013, RIL had submitted the Field Development Plan (FDP) for D-34 field to DGH.
Till date, RIL has discovered 19 gas fields and 1 oil field in the KG-D6 block. D1 & D3 gas fields have become operational since April 2009 while MA oilfield began pumping oil in September 2008. RIL estimates that output from KG-D6 can reach up to 60 mmscmd by 2019 when all of the satellite fields are put into production. The management committee of the Directorate General of Hydrocarbons has already approved $ 1.529 billion investment in four satellite fields that have a production capacity of 10 mmscmd. Furthermore, investment plans for the rest of the fields are under consideration.
In the annual report of 2012-2013, MukeshAmbani said, “We are planning to invest in a series of projects to develop around 4 trillion cubic feet of discovered natural gas resources from the block.”
He added that, “The field development plan for the R-Series project (in the KG-block) has been submitted to the Government of India for approval. This along with other projects is expected to add incremental production in the next four to five years.”
RIL Chairperson’s vision behind this expansion plan is to make India completely import-independent. “We believe gas from these projects will deliver energy to millions of Indians and would significantly help India in reducing import dependence.”Ambani said.