KG-D6 Basins To Get A Boost Of $5 bn From RIL

Mukesh Ambani led Reliance Industries Limited (RIL ) is going to invest $5 billion for the development of the oil and gas fields in KG-D6 blocks located near Bay of Bengal.

This investment will be used by a series of projects that will cumulatively result in higher output of natural gas and oil from these basins. In the annual report of 2012-2013, MukeshAmbani said, “We are planning to invest in a series of projects to develop around 4 trillion cubic feet of discovered natural gas resources from the block.”

Along with their European partner BP Plc, RIL has agreed to governmental plans to bring to production satellite fields in the eastern offshore KG basin block to raise the output of the natural gas and oil production. “The field development plan for the R-Series project (in the KG-block) has been submitted to the Government of India for approval. This along with other projects is expected to add incremental production in the next four to five years.” he added.

Various activities like work-overs, side tracks and compressor addition have been taken up to accentuate the current rate of production. In the existing infrastructure, the search for new blocks has begun. The production from this new-found well will add to the overall result in the next four-five years.

RIL had originally discovered 18 gas fields in the area. From this, Dhirubhai-1 (D-1) and Dhirubhai-3 (D-3) are the highest productive blocks. Various base management actions like work overs, side tracks, compressor, enhancement of water handling capacity will be taken up to maintain and upscale the productivity of D-1, D-3 and MA fields. RIL said, “ The next wave of projects in KG-D6 block are envisaged to e undertaken over the next three to five years and entail potential total investment in excess of USD5 billion to develop around 4 trillion cubic feet of discovered natural gas resources.”

There are a series of projects in the pipeline for the next phase of oil and gas development one of which is satellite discoveries in KG-block. The company also plans to invest a huge amount in the block enhancement plans.

The vision of Mukesh Ambani behind this expansion plan is to make India completely import-independent. “We believe gas from these projects will deliver energy to millions of Indians and would significantly help India in reducing import dependence.”Ambani said. The company also said that by the end of 2012, fields in KG-block had produced 2 TCF of gas and 22 million barrels that saved nearly USD 35 billion in energy imports.

Apart from this, the company also looks for new opportunities globally that strategically fit with its integrated value chain. RIL aspires to become one of global top ten independent hydrocarbon producers.

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