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Reliance, BP start gas production from 3rd deepwater field off India's east coast
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Reliance, BP start gas production from 3rd deepwater field off India's east coast
Jun 30, 2023 10:26 AM

Reliance Industries Ltd and BP Plc on Friday, June 30, said they have commenced production from the MJ field, following testing and commissioning activities.

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The MJ field represents the last of three major new deepwater developments the RIL-BP consortium have brought into production in block KG D6 off the east coast of India.

The start of gas and condensate production from the MJ field follows the kick-off of the R-Cluster field in December 2020 and Satellite Cluster in April 2021. All three developments utilise the existing hub infrastructure for the block.

Together, the three fields are expected to produce around 30 million standard cubic metres of gas a day (one billion cubic feet a day) when the MJ field reaches peak production. This is expected to account for around one-third of India’s current domestic gas production and meet approximately 15 percent of India’s demand.

Mukesh Ambani, Chairman and Managing Director of Reliance Industries, said, "We continue to be proud of our partnership with BP that combines our expertise in commissioning complex projects under some of the most challenging environments in the last few years. Alongside the other KG D6 fields, the MJ development truly supports the ‘Make in India’ and ‘Energy vision’ laid out by the government of India."

BP Chief Executive Bernard Looney said by safely bringing these new developments onstream, RIL and BP are making an important contribution in meeting India’s demand for secure supplies of gas.

"Our close strategic partnership with RIL now stretches back over 15 years and we are proud of how it continues to deepen – in gas, retail, aviation fuels and sustainable mobility solutions," Looney said.

Discovered in 2013 and sanctioned in 2019, the MJ field is located in water depths of up to 1,200 metres about 30 kilometres from the existing onshore terminal at Gadimoga on the east coast of India.

MJ is a high-pressure and high-temperature (HPHT), gas and condensate field. The field will produce from eight wells and reach a peak gas production of around 12 MMSCMD gas and 25,000 barrels of condensate per day.

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The development includes a new floating production, storage and offloading (FPSO) vessel – the ‘Ruby’ – to process and separate the condensate, gas, water, and impurities, before sending the gas onshore for sale.

Condensate is stored on the FPSO before being offloaded to shuttle tankers for supply to Indian refineries. RIL is the operator of the KG D6 block with a 66.67 percent participating interest and BP holds a 33.33 percent participating interest.

Shares of Reliance Industries Ltd ended at Rs 2,550.70, up by Rs 21.35, or 0.84 percent on the BSE.

Disclaimer: Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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