Reliance share zooms on joining hands with BP to set up second new deepwater gas field

Reliance Industries Limited (RIL) informed today that it has collaborated with BP, one of the world's seven oil & gas ‘supermajors’ and British multinational company to commence production from the Satellite Cluster Gas Field in block KG D6, off the east coast of India.  

Previously, Reliance and BP have been developing three deep-water gas developments in block KG D6–R Cluster, Satellite Cluster & MJ, which have been complementing each other expected to produce approx. 30 mmscmd (1 billion cubic feet a day) of natural gas by 2023, which will cater to 15 per cent of India's gas demand. The existing hub infrastructure in KG D6 block will be used by each of the development. RIL is the operator of the block, recording 66.67 per cent participating interest while BP recorded 33.33 per cent of the participating interest in the block.  

Post the startup of R Cluster in December 2020, the Satellite Cluster has become the second of the three developments to come on board. The third KG D6 development, MJ, is all set to kickstart in the latter half of 2022. The location of the field is reported to be 60 km from the existing onshore terminal at Kakinada (Andhra Pradesh) on the east coast of India in water depths of up to 1,850 metres. The field will produce gas from four reservoirs, using a total of five wells, and is predicted to reach gas production of up to 6 mmscmd. Meanwhile, R Cluster and Satellite Cluster are expected to contribute around 20 per cent of India’s current gas production.  

Headquartered in Mumbai, Reliance Industries Ltd is an Indian multinational conglomerate company. It owns businesses across India and is engaged in energy, petrochemicals, textiles, natural resources, retail, and telecommunications.  

On Monday, the share of Reliance traded at Rs 1,955, which is 2.66 per cent up on BSE.