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BP and Reliance sanction second phase of integrated KG D6 development

Release date: 19 April 2018

 

To develop ‘Satellite cluster’ deep-water gas fields in India, second of three projects; together all three projects to bring 1 bcf/d of new production by 2022

 

Two men wearing safety kit on an oil rig

BP and Reliance Industries Limited (RIL) today announced the sanctioning of the ‘Satellite cluster’ project in Block KG D6. The companies are moving forward to develop the Block’s discovered deep-water gas fields in an integrated series of projects, bringing new gas production for India.

The ‘Satellite cluster’ is the second of three projects in the Block KG D6 integrated development. The first of the projects, development of the ‘R-Series’ deep-water gas fields, was sanctioned in June 2017. Together the three projects will develop a total of about 3 trillion cubic feet of discovered gas resources with a total investment of c. INR 40,000 crore (US$6 billion). They are expected to bring a total c. 30-35 million cubic metres (1 billion cubic feet) of gas a day new domestic gas production onstream, phased over 2020-2022.

Mukesh Ambani, Chairman and Managing Director of RIL, said: “In consonance with our announcements last year to raise domestic gas production, we are delighted to announce the on-schedule progress of the Satellite cluster in the east coast of India. This development supports the country’s imminent need of increasing domestic gas supply and is a firm step towards making India a gas-based economy.”

"This latest investment is a further demonstration of BP’s commitment to India. Through our partnership, Reliance and BP are able to develop these discovered gas resources efficiently and economically, working closely with the Government of India. These new developments will produce much needed energy for India’s thriving economy."
 

Bob Dudley, group chief executive

Integrated field development of deep-water gas fields

The Satellites cluster is a dry gas development and comprises four discoveries with five well subsea development in ~1700 metres water depth, up to ~15 kilometres east and southeast of the producing D1D3 fields in KG D6.

The first of the KG D6 projects to be sanctioned, the R-series project, is already in execution phase with all major contracts awarded. The Satellites cluster project will draw on execution synergies with the R-series project being developed concurrently.

India today consumes over 5 billion cubic feet a day of natural gas and aspires 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. 

Further information

 

Contacts

 

BP press office, London: +44 20 7496 4076, bppress@bp.com
BP press office, New Delhi:  +91 11 4375 5000, IndiaPressOffice@se1.bp.com
Reliance press office, Mumbai: +91 22 2278 5000 tushar.pania@ril.com

Notes to editors

 

  • In an historic partnership with RIL in 2011, BP took a 30% stake in multiple oil and gas blocks in India operated by RIL, including the producing Block KGD6. 
  • Block KGD6 participating interests are 60% RIL (operator), 30% BP and 10% NIKO.
  • Since formation of this partnership in 2011, the two companies have invested around INR 13000 crore (US$2 billion) in deep-water exploration and production to date. In addition to the D55 gas discovery announced in 2013, the partnership has combined BP’s technology and skills with RIL’s execution and operational capability to sustain production from the geologically complex reservoirs in D1D3 and D26 fields on Block KGD6. This has included the deployment of world-leading technologies for production from deep-water gas fields for the first time in India.
  • BP in India: With many investments in India and employing around 7,500 people in the oil, gas, lubricants and petrochemicals businesses, BP is today the largest international oil company in India. BP’s activities include Castrol lubricants; the licensing of competitive petrochemical technologies; oil and gas trading; IT and procurement back office activities; staffing and training for its global marine fleet; and the recruitment of skilled Indian employees for its global businesses. As part of its gas value chain alliance with Reliance Industries Ltd., India Gas Solutions Private Limited, a 50:50 joint venture to source and market gas in India has been marketing gas.
  • About Reliance Industries Limited (RIL): RIL is India’s largest private sector company, with a consolidated turnover of INR 330,180 crore ($ 50.9 billion), cash profit of INR 42,800 crore ($ 6.6 billion), and net profit of INR 29,901 crore ($ 4.6 billion) for the year ended March 31, 2017. RIL is the first private sector company from India to feature in Fortune’s Global 500 list of ‘World’s Largest Corporations’ – currently ranking 203rd in terms of revenues, and 110th in terms of profits. The company stands 106th in the ‘Forbes Global 2000’ rankings for 2017 – the top-most among Indian companies. It ranks amongst LinkedIn’s ‘Top Companies Where India Wants to Work Now’ (2018). RIL’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and 4G digital services.

Cautionary statement

 

In order to utilize the ‘safe harbor’ provisions of the United States Private Securities Litigation Reform Act of 1995 (the ‘PSLRA’), BP is providing the following cautionary statement.  This press release contains certain forward-looking statements – that is, statements related to future, not past events and circumstances – which may relate to one or more of the financial condition, results of operations and businesses of BP and certain of the plans and objectives of BP with respect to these items. These statements are generally, but not always, identified by the use of words such as ‘will’, ‘expects’, ‘is expected to’, ‘aims’, ‘should’, ‘may’, ‘objective’, ‘is likely to’, ‘intends’, ‘believes’, ‘anticipates’, ‘plans’, ‘we see’ or similar expressions.  Actual results may differ from those expressed in such statements, depending on a variety of factors including the risk factors set forth in our most recent Annual Report and Form 20-F under “Risk factors” and in any of our more recent public reports.

This document contains references to non-proved resources and production outlooks based on non-proved resources that the SEC's rules prohibit us from including in our filings with the SEC. U.S. investors are urged to consider closely the disclosures in our Form 20-F, SEC File No. 1-06262.

Our most recent Annual Report and Form 20-F and other period filings are available on our website at www.bp.com, or can be obtained from the SEC by calling 1-800-SEC-0330 or on its website at www.sec.gov.