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RIL-BP set to start gas production from R-Series; invest Rs 40,000 crore

RIL-BP set to start gas production from R-Series; invest Rs 40,000 crore

Gas production from R-Series has been delayed by six months because of COVID-19 pandemic and related disruptions in supply chain. Production from Satellite and MJ fields are expected in next financial year

New investment is projected to help RIL and BP achieve peak output of around 28 million standard cubic metres per day by 2023-24 New investment is projected to help RIL and BP achieve peak output of around 28 million standard cubic metres per day by 2023-24

Reliance Industries (RIL) is ready to start gas production from its second wave of discoveries in its eastern offshore KG-D6 block soon. According to sources, the platforms and installations are ready and the final testings are over. "The production can begin anytime soon," an executive said.

RIL and its joint venture partner BP Plc are investing about Rs 40,000 crore in the second wave of discoveries, which also include Satellite and MJ fields. The gas production from R-Series has been delayed by six months because of COVID-19 pandemic and the related disruptions in the supply chain. The production from Satellite and MJ fields are expected in the next financial year.

RIL earlier said that it will commission the project in R-Series in the ongoing third quarter. According to an investor presentation, the wells have been drilled, connected and tested, besides the completion of subsea installations. The balance works on control and riser platforms were under execution at that point of time.

The production from RIL's older fields in Krishna Godavari basin KG-D6 block halted in February. It made 19 gas discoveries in KG-D6. The new investment is projected to help RIL and BP achieve peak output of around 28 million standard cubic metres per day by 2023-24.

In 2011, BP had bought 30 per cent stake in most of RIL's oil and gas blocks, including the gigantic eastern offshore KG-D6 fields. BP Plc entered into the business as an equity partner since the assets were facing decline in production quantity. The E&P business of RIL has been in trouble for the last five years. BP has also invested $1 billion in July for 49 per cent stake in RIL's fuel retailing joint venture.

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