Projects

Block KG-D6 Integrated Development, Bay of Bengal

The KG-D6 block lies in the Krishna-Godavari basin of the Bay of Bengal on the eastern coast of India.

Project Type

Offshore block development

Location

Bay of Bengal, India

Total Reserves

14,000bcf of gas and 140 million barrels of oil

Total Investment

$6bn

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The KG-D6 block lies in the Krishna-Godavari basin of the Bay of Bengal on the eastern coast of India.

The block is owned by three entities, namely its operator Reliance Industries Limited (Reliance) (60%), BP (30%) and Niko Resources (10%).

It covers an area of 8,100km² and lies in water depths between 700m (2,297ft) and 1,700m (5,577ft).

“It covers an area of 8,100km² and lies in water depths between 700m (2,297ft) and 1,700m (5,577ft).”

The total reserves accumulated in the block are estimated at 14,000 billion cubic feet of gas (bcf) and 140 million barrels of oil equivalent (mboe).

Reliance commenced conceptual studies for the development of nine natural gas discoveries near the D1 and D3 gas fields in the block.

The satellite discoveries are planned to be tied back to the D1 and D3 production facilities.

A development plan for four satellite discoveries was submitted to the government in December 2009.

The integrated project is expected to be developed through an estimated investment of approximately $6bn.

The KG-D6 discovery details

The first three discoveries made in the KG-D6 block were Dhirubhai-1, Dhirubhai-2 and Dhirubhai-3.

The  estimated gas reserves accumulated in the three discoveries was approximately eight trillion cubic feet.

In March 2003, the deepwater rig Discover 534 discovered Dhirubhai-4, which featured gas in-place volumes of 1,700bcf.

In February 2006, Reliance encountered the block’s thickest hydrocarbon column to date, the MA-2 well, which is located 2km from the MA-1 discovery well.

The well was drilled to a total a depth of approximately 3.6km and penetrated a gross hydrocarbon column of 194m.

The column comprised 170m of gas / condensate with a 53°API and 24m of oil with a 42°API.

KG-D6 integrated development plan

The initial development in the KG-D6 field included the development of at least 18 production wells, along with subsea equipment, pipelines, a riser platform and an onshore terminal.

The gas fields in block KG-D6 will be developed as part of a three-phase integrated project.

“The gas fields in block KG-D6 will be developed as part of a three-phase integrated project.”

Phase one of the integrated project will involve the development of the R-Series fields, while the second phase will see the development of Satellite cluster fields.

The three projects together will develop approximately three trillion cubic feet (tcf) of gas and produce 30-35 million cubic metres (1bcf) of gas per day for the domestic market.

The projects will be developed in a phased manner between 2020 and 2022.

Development of the R-Series fields

The R-Series deepwater gas fields are located in water depths of 2,000m.

They will be developed as a dry gas development project via a subsea tieback to the existing Block KG-D6 platform.

The project is expected to have a production capacity of 12 million cubic metres (425 million cubic feet) of gas per day and will come on stream in 2020.

Development of the Satellite cluster fields

The Satellite cluster fields comprise four gas discoveries located in water depths of 1,700m.

These fields will also be developed as a dry gas development project through a five-well subsea development and are expected to come online by 2022.

KG-D4 platform jacket

The KG-D6 platform jacket, weighing 9,015t, was built at J Ray McDermott’s fabrication facility in Morgan City, Louisiana.

The piles and topsides fabricated at the company’s Jebel Ali facility in the United Arab Emirates (UAE).

Its jacket and cargo barge were loaded onto a fast transport vessel (FTV) at Pascagoula, Mississippi, for a 46-day journey through the Suez Canal to the marine and fabrication base on Batam Island, Indonesia.

The jacket and cargo barge were then towed for approximately 12 days to India.

“The gas fields in block KG-D6 will be developed as part of a three-phase integrated project.”

A support vessel known as REM Etive was used for installation, commissioning and inspection / maintenance / repairs.

The vessel is also equipped with two work-class ROVs, crane capacity and an active heave-compensated winch system.

Contractors Involved

The engineering, procurement, construction, and installation contract for the KG-D6 platform jacket was awarded to J Ray McDermott.

DeepOcean won a $166m three-year deal to provide a multipurpose subsea support vessel and related services.

REM Etive was deployed under a commercial agreement between DeepOcean and TS Marine in support of the development.

Bechtel was awarded the overall EPCM contract for the project.

Aker Kvaerner Subsea was responsible for the complete subsea production system under a $400m engineering, procurement and construction (EPC) contract.

The company also provided the closed loop system for the project.

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