RIL, BP to invest Rs 40,000 crore in KG basin over 3-5 yrs

RIL, BP to invest Rs 40,000 crore in KG basin over 3-5 yrs
Reliance Industries and British oil major BP have decided to invest a further Rs 40,000 crore to develop their existing partnership, including increasing output from the Krishna Godavari basin.

"BP and Reliance have now agreed to award contracts to progress the development of the 'R-Series' ultra-deep water gas field in Block KGD6 off the east coast of India... We plan to submit development plans for the next two projects (Satellites and D55) for government approval before the end of 2017," BP Group chief executive Bob Dudley said in a joint media briefing with Reliance Industries chairman Mukesh Ambani.

Development of the three projects, which will involve total investment of upto $6 billion (Rs 40,000 crore), is expected to bring a total of 30-35 mmscmd  (1 billion cubic feet of gas a day) of new domestic gas production, phased over 2020-2022, Dudley added.

In the first phase of partnership between the two companies, BP had acquired a 30% stake in multiple oil and gas blocks in India operated by RIL, including the producing block KGD6. Since formation of this partnership in 2011, the two companies have invested over Rs 10,000 crore ($1.6 billion) in deepwater exploration and production in the period to May 2017. In addition to the D55 gas discovery announced in 2013, the partnership has combined BP’s technology and skills with RIL's execution and operational capability to sustain production from the geologically complex reservoirs in D1D3 and D26 fields on Block KGD6. This has included the deployment of world-leading technologies for production from deep-water gas fields for the first time in India.

According to Ambani, the new partnership will look at developing differentiated fuels and also work towards carbon emissions trading. "Under this new cooperation our two companies will jointly explore options to develop differentiated fuels, mobility and advanced low carbon energy businesses in India. We expect to collaborate, in addition to the conventional fuels and aviation marketing, on unconventional mobility solutions, addressing electrification, digitisation and disruptive mobility trends," Ambani said.

This new and historic co-operation will evaluate opportunities in trading that could optimise the value of existing products like oil, gas, fuels, LNG, power and carbon. It will also look at working together on carbon emissions trading, and share knowledge around technology and management practices utilising our unique infrastructure systems, Ambani added.
DH News Service

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