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MJ project gets approval; RIL, BP to invest Rs 35,000 cr in KG basin

Gas production from KG D6 integrated development is expected to help reduce India's import dependence

Shine Jacob  |  New Delhi 

oil

Mukesh Ambani-led (RIL) and its partner on Tuesday announced the sanction of the project in the off the east coast of India. The three new projects by these are expected to get to the tune of Rs 35,000 crore.

(also known as D55) is the third of the three new projects in the Block KG D6 integrated development plan. Its approval follows sanctions for the development of “R-Series” deep-water fields in June 2017 and for the Satellites cluster in April 2018.

The three projects are together expected to develop a total of about 3 trillion cubic feet (tcf) of discovered resources with a total of Rs 35,000 crore ($5 billion).

These projects together, when fully developed, will bring about 1 billion cubic feet a day of new domestic on stream, phased over 2020-2022.

According to industry sources, the use of existing infrastructure in the by the is expected to save at least $1.5 billion for the three projects.

Government sources said the projects, along with discoveries, are expected to increase the natural gas production in India to 71.92 billion cubic meter (bcm) by 2021-22, from a mere 35.07 bcm now.

Gas production from KG D6 integrated development is expected to help reduce India’s import dependence and amount to over 10 per cent of the country’s projected gas demand in 2022.

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

He added that this will add to the increasing demand for in the country, save foreign exchange, and reduce dependency on

Of the three projects, the R-Series is in the execution phase.

All six wells have been drilled and gas from this project is on schedule and expected by mid-2020. is expected to begin production in mid-2022, said

Bob Dudley, chief executive, BP Group, welcomed the decision. “We are building an important upstream business in India, helping supply the country’s growing gas market,” he said

Dudley added, “Working closely with Reliance, we are efficiently developing discovered resources, with focused exploration to give options for the future. This latest 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.”

First Published: Tue, June 11 2019. 21:52 IST
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