BP, RIL to invest $6 billion in India’s offshore gas fields 🔓

India’s largest private sector company, Reliance Industries Limited (RIL), and British oil major BP announced Thursday they will bring new gas production for India by developing already-discovered deepwater gas fields, Kallanish Energy learns.

The firms will award contracts to progress development in Block KGD6 off the east coast of India. The R-series (D34) project is a dry gas development in water depths of more than 2,000 meters, expected to produce up to 425 million cubic feet (MMcf/d) of gas from 2020.

This is the first of three planned projects in Block KGD6 that are expected to be developed in an integrated manner, producing from about 3 trillion cubic feet of discovered gas resources. Combined, the three projects are estimated at $6 billion and would bring 1 billion cubic feet per day (Bcf/d) of new gas production onstream, phased over 2020-2022.

RIL and BP intend to submit development plans for the next two projects for the Indian government approval before the end of the year. The block is operated by RIL with a 60% ownership, in partnership with BP (30%) and NIKO (10%).

The Asian country consumes more than 5 Bcf/d of natural gas, with plans to double gas consumption by 2022.

“Gas production from the 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,” the companies said.

Additionally, RIL and BP agreed to expand their partnership for strategic cooperation on new opportunities in the Indian energy sector. They plant to jointly explore options to develop differentiated fuels, mobility and advanced low-carbon energy businesses in India, taking advantage of the country’s transition to low carbon.

Spokesman Bob Dudley said India’s demand for both energy and mobility is growing and evolving rapidly. “This presents many opportunities for BP and Reliance to build on our existing strong relationship in upstream and expand our partnership further downstream,” he added.