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India’s Reliance to invest $3.2bn to reverse output decline
October 15, 2013, 10:34 am

[AP]

Reliance Industries operates the world’s biggest oil refining complex in the Western Indian state of Gujarat and is owned by India’s richest man Mukesh Ambani (pictured) [AP]

Indian energy conglomerate Reliance Industries (RIL) has said it will invest $3.2 billion in bringing to production the satellite D34 gas discovery to reverse the decline in output at the Bay of Bengal KG-D6 block.

The Indian government announced earlier this month that it could appoint an international expert to work out the reasons for the sharp fall in natural gas production at RIL’s KG-D6 fields resulting in supply cuts for power production in the country.

The satellite D34 gas discovery holds 1.2 to 1.4 trillion cubic feet of gas reserves, according to the Indian conglomerate.

RIL said the field will start producing in four years with peak output of 12 million standard cubic metres per day (mmscmd).

The Indian company and its UK partner British Petroleum plan to quickly bring the gas fields in the block to production to help reverse the decline in output.

The duo are investing $1.529 billion in four other satellite fields that can produce 10 mmscmd and are expected to begin operating around the same time as the D34 discovery in 2017-18.

RIL estimates that output from KG-D6 can reach up to 60 mmscmd by 2019 when all of the satellite fields are put into production.

Reliance Industries operates the world’s biggest oil refining complex in the Western Indian state of Gujarat and is owned by India’s richest man Mukesh Ambani.

Source: Agencies

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