India will save $9 billion in oil import bill with the beginning of production from Reliance Industries' eastern offshore KG D-6 fields, said Petroleum Secretary R S Pandey.
"Yesterday evening, as RIL has informed us, production has begun," he told reporters.
Initial output was at 2.5 million standard cubic metre and will gradually increase. "Tomorrow it will become five million standard cubic metre per day," Pandey said.
The first, of the 15 fertiliser plants, that will get all of the initial output, is expected to get the gas in 3-4 days time, he said, adding, "The most distant plant will get the gas in about 15 days."
"In four months time, the production will be 40 mmscmd and in about a year's time it will be 80 mmscmd," he said.
"It will reduce oil import bill by about $9 billion annually during peak production at current prices," Pandey said adding, gas sales over the 11 year-life of the field will generate $42 billion in revenues.
The government's share in the production would amount to a minimum $14 billion, he said.