BP and Indian company Reliance Industries (RIL) are to invest $6bn in three projects to develop deepwater gas resources in offshore India in a bid to increase gas supply to the country.
The development is expected to bring 1Bcf/d of dry gas production on stream between 2020 and 2022.
The companies plan to award contracts to develop the ‘R-Series’ deepwater gasfields in Block KGD6 off the east coast of India.
Located nearly 70km offshore, the R-series (D34) project is a dry gas development situated in water-depths of more than 2,000m.
The offshore fields will be developed as a subsea tieback to the existing control and riser platform off Block KGD6.
Scheduled to become on stream on 2020, the project is expected to produce up to 12 million cubic metres of gas daily. The project represents the first of three planned projects in Block KGD6, which will be developed in an integrated manner.
Development plans for the remaining two projects are expected to be submitted by BP and RIL for government approval before the end of this year.
RIL chairman and managing director Mukesh Ambani 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.”
Currently, domestic consumption of natural gas in India is more than five billion cubic feet a day, which is estimated to be doubled by 2022.
Under the expanded partnership, the two companies will jointly explore options to develop differentiated fuels, mobility and advanced low-carbon energy businesses in India.
Formed in 2011, BP took a 30% stake in multiple oil and gas blocks in India operated by RIL in the partnership, including Block KGD6. RIL holds 60% interest in Block KGD6 and operates it, while the remaining 10% stake is with NIKO.
Image: The head office of BP. Photo: courtesy of WhisperToMe via Wikipedia.