The joint venture of Reliance Industries Limited (RIL) and BP Plc made a public announcement regarding receiving a green signal for MJ project.
MJ project which is also known as D55 is located in Block Krishna Godavari Dhirubhai 6 (KG D6), offshore the east coast of India.
Krishna Godavari Dhirubhai 6 (KG D6) projets
KG D6 is the first offshore gas field development and first underwater discovery of Reliance Industries. Under this project, installation of subsea equipment, laying pipelines, building and placing a riser platform and construction of an onshore terminal was done. Initially, production wells, along with subsea equipment, pipelines, a riser platform, and an onshore terminal was developed under this project.
The three projects in KD G6 development plan might generate 3 trillion cubic feet (tcf) of discovered gas resources. This project will deliver about 1 billion cubic feet (bcf) of new domestic gas onstream per day. The alliance of Reliance Industries and BP Plc has invested approximately Rs. 35,000 crores in this project.
Development of the R-Series fields: 1st Project in KG D6 project
Development of the R-Series fields id the first project in KG D6 project which is in the phase of execution. These fields will be developed as a dry gas development project.6 wells have been drilled in water depths of 1,920m along with a 54-line km and 18”/4” piggyback flow line. The project will have a production capacity of 12 million cubic meters (425 million cubic feet) of gas per day and will come on stream in 2020.
Development of the Satellite cluster fields: 2nd Project in KG D6 project
Development of the satellite cluster fields is the second project in KG D6 project. The satellite cluster fields have 4 gas discoveries which are located in water depths of 1,700m. The development of the satellites cluster is on track to deliver first gas by mid-2021.
MJ project (also known as D55): 3rd Project in KG D6 project
MJ project is the third amongst three new projects in the KG D6 integrate development plan. It is a third gas condensate field which is under development. This project is the water depth of 700-1,000 meters and a well depth of 4200 meters below mean sea-level in a high-temperature and pressure environment. In order to process and separate liquids and gas, this project has wells which are connected to subsea production, with tie-back to a Floating Production Storage and Offloading (FPSO) vessel. The project might commence production in mid-2022.
Future outlook of KG D6 project
The alliance of Reliance Industries and BP Plc through this project is aiming to satisfy the increasing demand for clean fuel in India.
KG D6 project might save foreign exchange and reduce dependency on imported gas.
Both the companies are focusing on empowering the Indian economy with an environment-friendly fuel and helping to strengthen energy security.
the collaboration is also aiming to explore options for the future and moving towards a low carbon future.
About BP Plc
The company entails in developing and extracting oil and gas, transporting and trading of oil, natural gas, liquefied natural gas, power, carbon products as well as derivatives and currencies, manufacturing and marketing fuels and products, generating renewable energy and venturing. The company’s alliance with Reliance Industries is offering a 30% share in the east coast Krishna–Godavari and Mahanadi basins.
The joint venture of Reliance Industries and BP Plc
The historic partnership of Reliance Industries and BP Plc took place in 2011 when BP took a 30% stake in KG D6 along with multiple oil and gas blocks in India operated by Reliance Industries. The primary objective of this joint venture was to bring all 3 discoveries to production by leveraging the existing infrastructure. Since the collaboration, both the companies have invested Rs. 13,000 crores in deep-water exploration and production. This partnership initiated the deployment of world-leading technologies in India in order to produce deep-water gas fields. Together both the companies sustain production from the geologically complex reservoirs in D1D3 on Block KG D6.
After the announcement of sanction of the third phase of integrated KG 06 development, the share price of Reliance Industries closed at Rs. 1331.10 on 12th June 2019.