Topic: Drilling

bp and RIL start production from second deepwater gas field in India

Region: Asia Pacific
Content Types: Report
Date: Apr, 2021

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 Reliance Industries Limited (RIL) and bp have announced the start of production from the Satellite Cluster gas field in block KG D6 located about 60km from the existing onshore terminal at Kakinada on the east coast of India in water depths of up to 1,850m.

RIL is India’s largest private sector company spanning hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services. Together with bp, the company has been developing three deep-water gas developments in block KG D6 – R Cluster, Satellite Cluster and MJ which are expected to produce a combined 30mn cu/m per day (around one billion cu/ft a day) of natural gas by 2023.

Both of the developments will utilise the existing hub infrastructure in the KG D6 block. RIL is the operator of the block with a 66.67% participating interest, while bp holds a 33.33% participating interest. It had originally been scheduled to start production in mid-2021.

The Satellite Cluster is the second of three scheduled developments to come onstream, following the start-up of R Cluster in December 2020. R Cluster is located at a water depth of greater than 2,000m, is the deepest offshore gas field in Asia, and is expected to reach plateau gas production of about 12.9mn cu/m per day in 2021.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited, commented, “We are proud of our partnership with bp that combines our expertise in commissioning gas projects expeditiously, under some of the most challenging geographical and weather conditions. This is a significant milestone in India's energy landscape, for a cleaner and greener gas-based economy. Through our deep-water infrastructure in the Krishna Godavari basin we expect to produce gas and meet the growing clean energy requirements of the nation.”

bp Chief Executive, Bernard Looney, added, “This start-up is another example of the possibility of our partnership with RIL, bringing the best of both companies to help meet India’s rapidly expanding energy needs. Growing India’s own production of cleaner-burning gas to meet a significant portion of its energy demand, these three new KG D6 projects will support the country’s drive to shape and improve its future energy mix.”

Together the R Cluster and Satellite Cluster are expected to produce about 20% of India’s current gas production. The third KG D6 development, MJ, is expected to come onstream towards the latter half of 2022.