BP and Reliance sanction second phase of deepwater gas development, India

4/20/2018

LONDON -- BP and Reliance Industries announced the sanctioning of the “Satellite cluster” project in Block KG D6, offshore India. The companies are moving forward to develop the block’s gas fields in an integrated series of projects.

The Satellite cluster is the second of three projects in the Block KG D6 integrated development. The first of the projects, development of the R-Series deep-water gas fields, was sanctioned in June 2017. Together the three projects will develop a total of about 3 Tcf discovered gas resources with a total investment of $6 billion. They are expected to bring a total 1 Bcfgd new domestic gas production on-stream, phased over 2020-2022.

Mukesh Ambani, chairman and managing director of RIL, 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.”

Bob Dudley, BP group chief executive added, "This latest investment is a further demonstration of BP’s commitment to India. 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."

Integrated field development. The Satellites’ cluster is a dry gas development and comprises four discoveries with five well subsea development in 1,700 m water depth, about 15 km southeast of the producing D1D3 fields in KG D6.

The first of the KG D6 projects to be sanctioned, the R-series project, is already in execution phase with all major contracts awarded. The Satellites cluster project will draw on execution synergies with the R-series project being developed concurrently.

India today consumes over 5 Bcfgd and aspires to double gas consumption by 2022. Gas production from the integrated development is expected to help reduce India’s import dependence and amount to over 10% of the country’s projected gas demand in 2022.

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