BP and Reliance Industries (RIL) have sanctioned the ‘Satellite cluster’ project, the second phase of the integrated Krishna Godavari Dhirubhai 6 (KG-D6) development in India.
With the sanctioning of the second of the three-phase project, the two companies are supporting the Block KG-D6’s discovered deep-water gas fields, thereby supporting new gas production capabilities for India.
The Satellites cluster is a dry gas development, which includes four discoveries with five well subsea developments in 1,700m water depth, up to 15km east and south-east of the producing D1D3 fields in KG D6.
RIL chairman and managing director Mukesh Ambani said: “In consonance with our announcements last year to raise domestic gas production, we are delighted to announce the on-schedule progress of the Satellite cluster in the east coast of India.
“This development supports the country’s imminent need of increasing domestic gas supply and is a firm step towards making India a gas-based economy.”
The first project, which involved the development of the ‘R-Series’ deep-water gas fields, was sanctioned by the companies last June.
The R-series project is currently in its execution phase with all major contracts awarded.
The new Satellites cluster project will draw on execution synergies with the first phase project being developed simultaneously.
BP group chief executive Bob Dudley said: “Through our partnership, Reliance and BP are able to develop these discovered gas resources efficiently and economically, working closely with the Government of India.
“These new developments will produce much needed energy for India’s thriving economy.”
The three projects will jointly develop a total of approximately three trillion cubic feet of discovered gas resources with a total investment of Rs400bn ($6bn).
The projects are expected to provide one billion cubic feet of new gas production each day by 2022.