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Output from RIL's KG block can be raised: BP

Output from RIL's KG block can be raised: BP

BP Plc on Tuesday said it is confident of raising natural gas production from partner Reliance Industries' eastern offshore KG-D6 block in two years time.

BP Plc on Tuesday said it is confident of raising natural gas production from partner Reliance Industries ' eastern offshore KG-D6 block in two years time.

The British company's India head Sashi Mukundan said that the block off the Andhra coast has a lot of potential, which BP will closely be working with Reliance to exploit.

"We have just received the approval (to acquire stake in KG-D6 and 20 other blocks of Reliance). We are studying the data. We are confident that there is more gas and output can be raised. But these things take time; it may take a couple of years," he said on sidelines of a summit.

BP last month completed a $7.2 billion acquisition of a 30 per cent stake in 21 oil and gas blocks that Reliance operates in India.

Reliance has seen natural gas output from its showpiece KG-D6 block drop to below 45 million standard cubic meters per day for the first time in nearly two years.

The current production is less than 61.5 mmscmd output achieved in March last year and 70.39 mmscmd Reliance had projected in the field development plan in 2006.

The present output is made up of 37.7 mmscmd from Dhirubhai-1 and 3, or D1 and D3, gas fields and 7.1 mmscmd from MA oil field in the same block.

D1 and D3 "are not the only fields in KG-D6. There are (16) other fields and we will work on all of them," he said, adding a team of 30 specialists from BP will be joining Reliance this month to jointly address issues like drop in reservoir pressure and water ingress in wells.

Besides looking at drilling new wells on D1 and D3, BP will also assist Reliance in putting in place a viable development plan for the satellite discoveries in the KG-D6 block.

Mukundan said BP-Reliance equal joint venture for sourcing and marketing of gas will look at booking spot on Petronet LNG's Dahej and Royal Dutch Shell's Hazira import facilities in Gujarat to bring in their own LNG cargoes.

"We will certainly look at taking capacity on existing terminal and possible also building our import terminal in future," he said, adding that the joint venture was in the process of being incorporated.


Published on: Sep 06, 2011, 7:26 PM IST
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