New Delhi: Reliance Industries Ltd. (RIL) will start production of natural gas MJ Field – the third and final set of discoveries the firm is developing in the eastern offshore KG-D6 Block – to increase total production by about two-thirds in the last quarter of 2022.
In an investor presentation announcing first quarter earnings, RIL said it has completed its first offshore installation operation and the second one will commence in November this year.
It said, “Excavation and construction of wells is going on.” “The first gas is expected by the third quarter FY23.”
The financial year 2023 will start in April 2022 and the third quarter will be October-December 2022.
RIL and its affiliates BP PLC The UK plans to use a floating production system in the high-sea in the Bay of Bengal to produce the deepest gas discovery in the KG-D6 block.
The MJ-1 gas discovery is located approximately 2,000 meters below the Dhirubhai-1 and 3 (D1 and D3) fields – the first and largest field in the KG-D6 block. MJ-1 is estimated to have at least 0.988 trillion cubic feet (Tcf) of contingency resources.
The area also has oil deposits that will be produced using a floating system, called an FPSO.
“The FPSO and subsea production system (are) on track,” the company said in the presentation.
RIL-BP is developing three deepwater gas developments in Block KG-D6 – R Cluster, Satellite Cluster and MJ – which together are expected to produce about 30 million standard cubic meters per day of natural gas by 2023 , which meets up to 15 per cent of India’s gas demand per day.
The R-cluster started production in December 2020 and the satellite cluster started in April. While the R-cluster is expected to reach a plateau gas production of about 12.9 mmscmd in 2021, the satellite cluster will have a maximum production of 6 mmscmd. The maximum production of MJ field will be 12 mmscmd.
RIL said the average production from KG-D6 in April-June this year was 16.6 mmscmd.
The firm had sold 18 mmscmd of gas from the fields in three rounds of bidding.
Oil-to-telecom conglomerate RIL has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 – the largest in the lot – were put into production from April 2009 and MA, the only oil field in the block, was put for production in September 2008. M.A The field ceased production in 2019, with D-1 and D-3 shutting down production in February 2020. Other discoveries have either been surrendered or withdrawn by the government for not meeting the deadline to start production.
RIL is the operator of the block with 66.67 per cent stake and BP holds 33.33 per cent.
The company said in the presentation that it received $3.62 per million British thermal unit for KG-D6 gas in the April-June quarter. This was lower than the $3.99 per mmBtu received in the previous quarter.
To produce gas from under coal in CBM blocks in Madhya Pradesh, it received USD 6.01. In January-March, the company had received $5.20 per mmBtu for coal bed methane (CBM).
The rates are different as the firm used different pricing formulas to fix the price of gas from KG-D6 and CBM.
In an investor presentation announcing first quarter earnings, RIL said it has completed its first offshore installation operation and the second one will commence in November this year.
It said, “Excavation and construction of wells is going on.” “The first gas is expected by the third quarter FY23.”
The financial year 2023 will start in April 2022 and the third quarter will be October-December 2022.
RIL and its affiliates BP PLC The UK plans to use a floating production system in the high-sea in the Bay of Bengal to produce the deepest gas discovery in the KG-D6 block.
The MJ-1 gas discovery is located approximately 2,000 meters below the Dhirubhai-1 and 3 (D1 and D3) fields – the first and largest field in the KG-D6 block. MJ-1 is estimated to have at least 0.988 trillion cubic feet (Tcf) of contingency resources.
The area also has oil deposits that will be produced using a floating system, called an FPSO.
“The FPSO and subsea production system (are) on track,” the company said in the presentation.
RIL-BP is developing three deepwater gas developments in Block KG-D6 – R Cluster, Satellite Cluster and MJ – which together are expected to produce about 30 million standard cubic meters per day of natural gas by 2023 , which meets up to 15 per cent of India’s gas demand per day.
The R-cluster started production in December 2020 and the satellite cluster started in April. While the R-cluster is expected to reach a plateau gas production of about 12.9 mmscmd in 2021, the satellite cluster will have a maximum production of 6 mmscmd. The maximum production of MJ field will be 12 mmscmd.
RIL said the average production from KG-D6 in April-June this year was 16.6 mmscmd.
The firm had sold 18 mmscmd of gas from the fields in three rounds of bidding.
Oil-to-telecom conglomerate RIL has so far made 19 gas discoveries in the KG-D6 block. Of these, D-1 and D-3 – the largest in the lot – were put into production from April 2009 and MA, the only oil field in the block, was put for production in September 2008. M.A The field ceased production in 2019, with D-1 and D-3 shutting down production in February 2020. Other discoveries have either been surrendered or withdrawn by the government for not meeting the deadline to start production.
RIL is the operator of the block with 66.67 per cent stake and BP holds 33.33 per cent.
The company said in the presentation that it received $3.62 per million British thermal unit for KG-D6 gas in the April-June quarter. This was lower than the $3.99 per mmBtu received in the previous quarter.
To produce gas from under coal in CBM blocks in Madhya Pradesh, it received USD 6.01. In January-March, the company had received $5.20 per mmBtu for coal bed methane (CBM).
The rates are different as the firm used different pricing formulas to fix the price of gas from KG-D6 and CBM.
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