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.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

KONE Opens India's First Digital Experience Centre in Pune

KONE, a global elevator and escalator manufacturer, has inaugurated its first Digital Experience Centre (DEC) in India, located in Pune. The facility aims to showcase how artificial intelligence (AI), connectivity and data-driven technologies can enhance customer experiences and improve building operations.The centre was inaugurated by Jussi Herlin, Executive Vice Chair, KONE Corporation; Philippe Delorme, President and CEO, KONE; and Nandan Nilekani, Co-founder and Chairman of the Board, Infosys.Designed as an interactive customer environment, the facility demonstrates digital solutions cover..

Next Story
Infrastructure Urban

CII GreenCo Launches Circularity Guidelines for Indian Industry

The Confederation of Indian Industry (CII) GreenCo Council has launched the CII GreenCo Circularity Guidelines – Pilot Version at the 17th CII GreenCo Waste & Resource Management Summit 2026 in Chennai. The initiative aims to strengthen resource efficiency, waste reduction and circular economy practices across Indian manufacturing and process industries.The guidelines introduce a structured framework with circularity indices covering raw materials, consumables, packaging and other resource inputs. These indicators will help industries assess existing practices, identify opportunities to ..

Next Story
Infrastructure Energy

Global Electronics Association Launches IPC-1783-CO2E Standard

The Global Electronics Association has introduced IPC-1783-CO2E, a new international standard aimed at improving consistency, transparency and comparability in product carbon footprint reporting across the electronics manufacturing industry.The standard, titled International Standard for Data Collection and Reporting of CO2 Equivalent (CO2e) Emissions for the Electronics Manufacturing Supply Chain, provides industry-specific guidance for collecting, estimating and reporting carbon emissions data.With increasing regulatory requirements and customer expectations, electronics manufacturers face c..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code