The two companies approved the development of the MJ deep-water gas field, one of the three projects in Block KG-D6.
The approval follows sanctions for the development of R-Series deep-water gas field in June 2017 and Satellites cluster in April last year.
Development of three projects is expected to entail an investment of around $5bn. These projects, together, will develop a total of about 3 trillion cubic feet (tcf) of discovered gas resources.
Once developed, they are expected to deliver a combined natural gas production of around 1 billion tcf in phases.
Reliance Industries chairman and managing director Mukesh Ambani said: “Bringing these three discoveries to production, as promised in 2017, by leveraging the existing infrastructure has been the primary objective of the Reliance – BP Joint Venture.
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“The gas will satiate the increasing demand for clean fuel in the country, save foreign exchange and reduce dependency on imported gas.”
Situated in 700m-1,100m water depth, MJ is a gas condensate field. The project consists of wells connected to a subsea production, with tie-back to a floating production storage and offloading (FPSO).
The FPSO vessel will process and separate liquids, while gas will be exported to the onshore terminal through an existing pipeline.
The MJ project is expected to commence production by mid-2022.
BP Group chief executive Bob Dudley said: “Working closely with Reliance, we are efficiently developing discovered resources, with focused exploration to give options for the future.
“This latest investment is a further demonstration of BP’s commitment to India and helps support India in addressing the dual challenge and moving to a low carbon future.”