RIL-BP to triple gas output from KG-D6 by 2021-22

Reliance Industries and its partner BP plc will nearly triple natural gas production from their eastern offshore KG-D6 block by 2021-22 in anticipation of a 'right' gas price covering their exploration risk.
KG-D6 block, which produced an average of 11.5 million standard cubic meters per day of gas in January-March quarter, will see output rise to 30-35 mmscmd by 2021-22, according to a presentation RIL-BP gave at a meeting in Prime Minister's Office (PMO) last week.
The output rise will come from R-series, 4-satellite and other satellite fields and MJ-1 fields, they told the meeting which was attended by Principal Secretary to Prime Minister Nripendra Misra and Cabinet Secretary Ajit Seth.

The meeting called to review exploration issues and review gas production plans, was also attended by Finance Secretary Rajiv Mehrishi, Chief Economic Adviser Arvind Subramanian, NITI Aayog member Bibek Debroy and officials from the ministries of oil and coal.
Sources said RIL-BP as well as other operators including state-owned Oil and Natural Gas Corp called for remunerative natural gas price that covers their exploration risk.
Operators sink in millions of dollars in exploration at their own risk and get back nothing if no discovery is made.

While RIL-BP wanted government to lay a roadmap to transition to market prices, ONGC said its new discoveries are not viable at current gas price of USD 4.66 per million British thermal unit.

Sources said RIL-BP plan to produce 13-15 mmscmd of gas for 13 years from D-34 or R-Series discovery in KG-DWN-98/3 or KG-D6 block.
The discovery holds an estimated 2.2 trillion cubic feet of reserves and USD 3.18 billion is being spent on bringing it to production.
The four satellite gas discoveries of D-2, 6, 19 and 22, which hold 617 billion cubic feet of reserves, will produce 10.36 mmscmd of gas for eight years. The partners are investing USD 1.529 billion in developing the fields.
Other satellite fields of D-29, 30, 31 as well as the significant MJ-1 field will also be brought to production but field development plans detailing investment and likely production have so far not been firmed up, they said.

RIL has so far made 19 gas discoveries and 1 oil find in the KG-D6 block.
Of these, D-1 and D-3 -- the largest among the lot -- were brought into production from April, 2009, but output has fallen sharply from 54 mmcmd in March, 2010, to 6.16 mmscmd in March. Together with 5.07 mmcmd of associated gas produced from the MA oilfield in the same area, total production from the block amounts to 11.5 mmscmd.