RIL Rises on Commencing Deepwater Gas Field in KG D6 Block

Apr 26,2021

Reliance Industries (RIL) rose 0.52 percent to Rs 1914.25 after the company and bp announced the start of production from the satellite cluster gas field in block KG D6 off the east coast of India.

RIL and bp have been developing three deep-water gas developments in block KG D6 - R Cluster, Satellite Cluster, and MJ - which together are expected to produce around 30 million metric standard cubic meters per day (1 billion cubic feet a day) of natural gas by 2023, meeting up to 15 percent of India's gas demand. The developments will each utilize the existing hub infrastructure in the KG D6 block. RIL is the operator of the block with a 66.67 percent participating interest and bp holds a 33.33 percent participating interest.

The satellite cluster is the second of the three developments to come onstream, following the start-up of R Cluster in December 2020. It had originally been scheduled to start production in mid-2021. The field is located about 60 km from the existing onshore terminal at Kakinada on the east coast of India in water depths of up to 1850 meters.

The field will produce gas from four reservoirs utilizing a total of five wells and is expected to reach gas production of up to 6 million metric standard cubic meters per day. Together, the R Cluster and Satellite Cluster are expected to contribute to about 20 percent of India's current gas production.

The third KG D6 development, MJ, is expected to come on-stream towards the latter half of 2022.

BP is one of the largest international energy companies in India. The company's activities in India also include Castrol lubricants, oil and gas trading, clean energy projects through Light source bp, IT back-office activities, a new global business services center, staffing and training for the global bp marine fleet, and the recruitment of skilled Indian employees for bp's global businesses.

RIL is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.

On a consolidated basis, RIL reported a 12.5 percent rise in net profit to Rs 13,101 crore on a 23.12 percent decline in net sales to Rs 117,860 crore in Q3 December 2020 over Q3 December 2019.

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