18th Dec 2020 16:09
(Alliance News) - UK oil major BP PLC on Friday announced the start of production from the R Cluster ultra-deep-water gas field offshore India.
Alongside Indian conglomerate Reliance Industries Ltd, BP is developing three deepwater gas projects in block KG D6, which are R Cluster, Satellite Cluster and MJ, which collectively are expected to meet 15% of India's gas demand by 2023, at 1 billion cubic feet per day.
R Cluster is the first project to come onstream, and is expected to reach plateau gas production of around 12.9 million standard cubic metres per day in 2021.
Reliance holds 67% operating interest in KG D6, and BP the remaining 33% interest.
Looking ahead, the Satellites Cluster is expected to come onstream in 2022, following the MJ project in 2022.
In July, BP PLC and Indian conglomerate Reliance Industries announced the start of their new Indian fuels and mobility joint venture Reliance BP Mobility Ltd, with BP paying USD1 billion to Reliance for a 49% stake in the joint venture, while Reliance holds the other 51%.
"This start-up is another example of the possibility of our partnership with Reliance, bringing the best of both companies to help meet India’s rapidly expanding energy needs. Growing India’s own production of cleaner-burning gas to meet a significant portion of its energy demand, these three new KG D6 projects will support the country’s drive to shape and improve its future energy mix," said Chief Executive Bernard Looney.
Shares in BP were up 0.4% at 270.45 pence on Friday in London, while Reliance's shares ended 0.6% higher at INR1,998.10 in Mumbai.
By Dayo Laniyan; [email protected]
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