Reliance and BP Announced Partnership for Gas Production

Reliance Industries Limited (RIL) and BP announced they are moving forward to develop already-discovered deepwater gas fields, bringing new gas production for India.

The two companies have agreed to deepen and expand their partnership to work jointly across a wide range of areas throughout India’s energy sector. According to a press release issued by RIL, both the companies announced that they will award contracts to progress development of the ‘R-Series’ deep water gas fields in Block KGD6 off the east coast of India.

The R-series (D34) project is a dry gas development in water-depths of more than 2,000 metres, approximately 70 kilometres offshore. The R-series fields will be developed as a subsea tieback to the existing control and riser platform off Block KGD6. The project is expected to produce up to 12 million cubic metres (425-million cubic feet) of gas a day, coming on stream in 2020.

This is the first of three planned projects in Block KGD6 that are expected to be developed in an integrated manner, producing from about 3 trillion cubic feet of discovered gas resources. RIL and BP plan to submit development plans for the next two projects for Government approval before the end of 2017.

Development of the three projects, with total investment of Rs 40,000-crore (6-billion-dollar), is expected to bring a total 30-35-million cubic metre (1-billion-cubic feet) of gas a day new domestic gas production onstream, phased over 2020-2022.

On the development, Mukesh Ambani, Chairman and Managing Director of RIL, said, “We are delighted to progress these developments, which will provide India with much needed indigenous energy and support the Prime Minister’s call for import substitution and the development of a gas-based economy. The solid relationship between our two companies is a great example of what can be achieved while working together at scale.”

Commenting on it, Bob Dudley, BP Group Chief Executive, welcomed the investment, “This is an important step forward for BP in India. Working closely together, Reliance and BP are now able to develop these major deep water gas resources offshore India efficiently and economically. It is testament to our commitment to working in partnership with Reliance and with the Government to produce more energy in India, for India."

India today consumes over 5-billion cubic feet a day of natural gas and aspires to double gas consumption by 2022. Gas production from the integrated development is expected to help reduce India’s import dependence and amount to over 10 per cent of the country’s projected gas demand in 2022; benefiting India and domestic consumers at large.

Execution of the R-Series and following projects will require deployment of advanced skills, processes and technologies through the combined partnership of RIL and BP to develop and produce gas from these ultra-deep reservoirs. The implementation of other two projects in Block KGD6 is subject to applicable regulatory and Government approvals.