Reliance approved for investment to boost KG-D6 output

26 Apr 2024 CW Team

Reliance Industries announced that they had received government approval to increase investments in developing gas reserves in their KG-D6 block in the Bay of Bengal. According to a company official, this could potentially add 4 to 5 million standard cubic meters per day to the production. Reliance and its partner bp Plc currently produce approximately 30 mmscmd, which accounts for about 30 percent of India's gas production, from the KG-D6 block.

During an investors' call where they announced the fourth-quarter earnings, Sanjay Roy, senior vice-president for exploration and production at Reliance Industries, stated that the government had approved the development plan for incremental production. He mentioned that the plan had the potential to deliver an additional 4 to 5 million standard cubic meters per day in the coming years, thus augmenting their current production. However, he refrained from providing specifics regarding the approved investment.

Reliance-bp produces around 30 mmscmd of gas from three sets of discoveries in the deep-sea KG-DWN-98/3 or KG-D6 block. The latest addition to their production was the MJ oil and gas field, which commenced production in May 2023. All three sets of discoveries, with MJ being the deepest, were made more than a decade ago and have been progressively put into production. Prior to this, they had initiated production from the R-Cluster field in December 2020 and the Satellite Cluster in April 2021.

KG-D6 has significantly contributed to domestic natural gas production, reaching a multi-year high of 99 mmscmd. This gas is utilized for various purposes such as electricity generation, fertilizer production, as well as for running automobiles using CNG or piped to kitchens for cooking.

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