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RIL-BP to Submit New Plan for KG-D6 Gas Field

  • With KG-D6 output hitting an all- time low, Reliance Industries and partner BP will submit to the government by October an integrated development plan to produce natural gas from all the 18 discoveries in the block.RIL and BP made a presentation to the Oil Secretary G C Chaturvedi on March 16 detailing “an integrated and capital efficient plan for block development,” sources in know of the development said.The duo projected first gas from R-Series, the third largest gas find in the eastern offshore KG-DWN-98/3 or KG-D6 block, by 2015 and production from satellite fields by 2016 subject to timely regulatory approvals. RIL began production from Dhirubhai-1 and 3 (D1&D3) fields, the largest among the 18 gas and one oil find, in April 2009 but output has fallen from a peak of 54 million cubic meters per day in March 2010 to 28.16 mmcmd this month.

  • Together with 6.46 mmcmd of gas production from D-26 or MA oil field in the same area, block output is 34.62 mmcmd.The plan would help in cost savings of over US$1 billion due to integration and optimisation. In addition, un-incurred phase-II cost of D1&D3 field development plan (US$3.1 billion out of total cost of US$8.8 billion) would not be required to be spent, the presentation said.Sources said RIL-BP plan to connect R-Series and four satellite fields and other satellite fields would be hooked up to these.

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