Reliance Industries (RIL) and BP have sanctioned the third phase of the integrated field development plan for the MJ project in the KG D6 Block of the Krishna Godavari basin on the east coast of India.
The MJ Project, a deep-water high-temperature-high-pressure project, follows the sanction of the R-Series deep water gas field in June 2017, and the development of the Satellite Cluster in April 2018.
The RIL and BP combine will invest around `35,000 crore to develop about 3 trillion cubic feet (tcf) of new discovered gas resources after they suffered decline in gas output from the D1 and D3 fields over the last decade.
The three new projects are estimated to together produce 1 billion cubic feet (bcf) of additional gas per day phased over 2020-22.
Mukesh Ambani, chairman and managing Director of RIL, said, The gas will satiate the increasing demand for clean fuel in the country, save foreign exchange and reduce dependency on imported gas.
The R-Series project, the first of the three projects, is in the execution phase. All six wells have been drilled and the pipeline work is complete. The production is expected by mid-2020, the company said. The second project, which involves the development of the Satellite Cluster, is on track with all major contracts awarded to deliver first gas by mid-2021, the company said. The company claims the gas production from KG D6 integrated development is expected to help reduce India s import dependence and amount to over 10% of the country s projected gas demand in 2022, benefiting India and domestic consumers at large.
Bob Dudley, BP Group chief executive, welcomed the investment decision: We are building an important upstream business in India, helping to supply the country s growing gas market. Working closely with Reliance, we are efficiently developing discovered resources, with focused exploration to give options for the future.