1 Bcf/d of projects planned
BP (ticker: BP) and Reliance Industries (ticker: RIL) announced today plans to develop the ‘R-Series’ deepwater gas fields in offshore India.
The ‘R-Series’ is a set of gas fields in Block D6, off the coast of eastern India. BP reports that the plays are about 40 miles offshore, with water depths around 6,000 feet. These fields will be developed using a subsea tieback to the already-present platform off Block D6. BP estimates that current plans will yield peak production of about 425 MMcf/d, coming online in 2020.
The ‘R-Series’ development is part of BP and RIL’s larger plans for Block D6. RIL and BP intend to submit development plans for two more projects developing the block by the end of the year. In total, the three projects will require about $6 billion in investment and will bring about 1 Bcf/d of new production online from 2020 to 2022. The companies estimate that these three projects will produce a combined 3 Tcf of gas over their lifespan.
Source: Energy-pedia
Indian gas consumption to double in 5 years
India’s natural gas consumption is expected to grow quickly in the next few years. Current consumption of about 5 Bcf/d is projected to double by 2022, meaning this development will be well-timed. Indian overall demand for fuels is expected to grow by around 5-7% over the next ten years, making it one of the major growth markets for oil and gas producers.
Partnership began in 2011
BP entered into a partnership with RIL in 2011, taking a 30% stake in several offshore resource blocks. The two companies have previously invested a combined $1.6 billion in exploring and developing fields in offshore India. In the Block D6, RIL is the operator and holds a 60% interest, while BP holds 30% and NIKO Resources holds 10%. This situation may change, as NIKO is currently facing a liquidity concern and is marketing its stake in the Block.
BP Group CEO commented on the development plans, remarking “India’s demand for both energy and mobility is growing and evolving rapidly. This presents many opportunities for BP and Reliance to build on our existing strong relationship in upstream and expand our partnership further downstream. Combining skills and experience from both our companies, we expect to cooperate on mobility and advanced low carbon solutions and jointly explore other opportunities throughout India’s energy sector.”
