Gas production from the R-Series field to restart
OIL & GAS

Gas production from the R-Series field to restart

Gas production from the R-Series field was expected in June, but due to the Covid-19 lockdown, there has been a disturbance in the supply chain, and the project could not be completed in time. Reliance is working on three projects in the Krishna Godavari basin KG-D6 block, where production from older fields stopped in February this year. R-series will be first of the three to go live in November or December. The other two are in pre-commissioning, and commissioning is expected in the third quarter. Peak output of around 28 million standard cubic metres per day is expected by FY24 when all three projects are up and running.

R-cluster's MA field stopped producing last year. Any other discoveries that were made have either been given up or confiscated by the government for not meeting timelines to start production. Reliance Industries is the main contractor of the block, holding 66.6% interest while BP has the remaining stake.

R-Cluster will have a high yield of 12 mmscmd while certain satellites, which are aiming to begin production from the third quarter of 2021, would produce a large amount of 7 mmscmd. MJ field will then start producing gas in the third quarter of 2022 and will have a high output of 12 mmscmd. Last year in November, Reliance Industries had negotiated the sale of the first set of 5 mmscmd of gas from the newer ones in the KG-D6 block. Reliance is said to have laid out a lesser quote of 8.4% of dated Brent price in November. This means that bidders had to give a quote of 8.4% or higher for the gas supplies or volume of gas required. Considering that the current average Brent price of $40 per barrel, the gas will cost around $3.36 per million BTUs.

"All wells (have been) drilled, completed, tested, and connected; subsea installation and testing work completed," said the firm, adding that most balance works on control and platforms are underway. A member of the firm went on to say that Reliance had considered November for the month to start production.

In the initial sale that took place in November 2019, Essar Steel, Adani Group, and GAIL bought a majority of what was on offer. The price then was at $5.1-5.16 for each unit. Gujarat State Petroleum Corp bought about 1.2 mmscmd of the amount, and 0.10 mmscmd went to Gujarat State Fertilizers & Chemicals Ltd and Gujarat Narmada Valley Fertilizers & Chemicals Ltd. Further, GAIL bought 0.3 mmscmd of gas on behalf of fertilizer companies. Hindustan Petroleum Corp Ltd had also bought 0.35 mmscmd while Adani Group and Mahanagar Gas Ltd bought 0.3 mmscmd. In all, there were 15 customers across sectors such as steel, petrochemicals, city gas, glass, and ceramic who bought gas. However, as international oil rates have slumped due to decreased demand during the lockdown restrictions, Essar Steel had managed to buy 2.25 mmscmd in the country's first clear and effective forward auction that lasted about five-and-a-half-hours.

Gas production from the R-Series field was expected in June, but due to the Covid-19 lockdown, there has been a disturbance in the supply chain, and the project could not be completed in time. Reliance is working on three projects in the Krishna Godavari basin KG-D6 block, where production from older fields stopped in February this year. R-series will be first of the three to go live in November or December. The other two are in pre-commissioning, and commissioning is expected in the third quarter. Peak output of around 28 million standard cubic metres per day is expected by FY24 when all three projects are up and running. R-cluster's MA field stopped producing last year. Any other discoveries that were made have either been given up or confiscated by the government for not meeting timelines to start production. Reliance Industries is the main contractor of the block, holding 66.6% interest while BP has the remaining stake. R-Cluster will have a high yield of 12 mmscmd while certain satellites, which are aiming to begin production from the third quarter of 2021, would produce a large amount of 7 mmscmd. MJ field will then start producing gas in the third quarter of 2022 and will have a high output of 12 mmscmd. Last year in November, Reliance Industries had negotiated the sale of the first set of 5 mmscmd of gas from the newer ones in the KG-D6 block. Reliance is said to have laid out a lesser quote of 8.4% of dated Brent price in November. This means that bidders had to give a quote of 8.4% or higher for the gas supplies or volume of gas required. Considering that the current average Brent price of $40 per barrel, the gas will cost around $3.36 per million BTUs. All wells (have been) drilled, completed, tested, and connected; subsea installation and testing work completed, said the firm, adding that most balance works on control and platforms are underway. A member of the firm went on to say that Reliance had considered November for the month to start production. In the initial sale that took place in November 2019, Essar Steel, Adani Group, and GAIL bought a majority of what was on offer. The price then was at $5.1-5.16 for each unit. Gujarat State Petroleum Corp bought about 1.2 mmscmd of the amount, and 0.10 mmscmd went to Gujarat State Fertilizers & Chemicals Ltd and Gujarat Narmada Valley Fertilizers & Chemicals Ltd. Further, GAIL bought 0.3 mmscmd of gas on behalf of fertilizer companies. Hindustan Petroleum Corp Ltd had also bought 0.35 mmscmd while Adani Group and Mahanagar Gas Ltd bought 0.3 mmscmd. In all, there were 15 customers across sectors such as steel, petrochemicals, city gas, glass, and ceramic who bought gas. However, as international oil rates have slumped due to decreased demand during the lockdown restrictions, Essar Steel had managed to buy 2.25 mmscmd in the country's first clear and effective forward auction that lasted about five-and-a-half-hours.

Next Story
Building Material

Suraj Estate Wins Euromoney Award for India’s Best Residential Developer

"Suraj Estate Developers Limited has received the Euromoney Real Estate Award 2025 for ‘India’s Best Residential Developer’, positioning the company among globally benchmarked leaders in the sector. The recognition reflects its four-decade legacy in delivering high-quality residential and redevelopment-led projects across South Central Mumbai. The Euromoney Real Estate Awards, presented by the London-based Euromoney magazine, are widely regarded as one of the most credible global assessments of performance in real estate, banking and finance. Winners are selected through surveys of inte..

Next Story
Building Material

Lloyds Metals, Tata Steel Sign MoU to Explore Strategic Collaboration

"Lloyds Metals and Energy Limited has signed a non-binding Memorandum of Understanding with Tata Steel Limited to evaluate potential areas of strategic cooperation across mining, logistics, pelletisation and steelmaking. The MoU was signed by B Prabhakaran, Managing Director of Lloyds Metals, and Mr T V Narendran, CEO and Managing Director of Tata Steel. The partnership framework aims to leverage the natural operational synergies between both companies and assess opportunities in greenfield steel projects, iron ore mining, slurry pipeline infrastructure, pellet manufacturing in iron ore–ric..

Next Story
Building Material

IndiaAI, Gujarat Govt Host Regional Conclave Ahead of 2026 AI Summit

The IndiaAI Mission under the Ministry of Electronics and Information Technology, along with the Government of Gujarat and IIT Gandhinagar, convened a Regional Pre-Summit Event at Mahatma Mandir, Gandhinagar. The initiative is part of the build-up to the India–AI Impact Summit 2026, scheduled for 15–20 February 2026 at Bharat Mandapam, New Delhi. The conclave brought together senior policymakers, technology leaders, researchers and industry practitioners to examine how AI can accelerate economic, digital and social transformation across sectors. The programme focused on the overarching th..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Open In App