(The following is a reformatted version of a press release
issued by BP and received via e-mail. The release was confirmed
by the sender.)
19 February 2013
BP and RIL update Government of India on KG D6 block enhancement
Bob Dudley, BP Group Chief Executive and Mukesh Ambani, Chairman
and Managing Director of Reliance Industries Limited (RIL) met
with the Indian Minister of Petroleum and Natural Gas, Dr
Veerappa Moily in Delhi today. They updated the Minister on
their joint future plans in India, including the KG D6 block
enhancement plan designed to increase production from the block.
Under the KG D6 block enhancement plan, BP and RIL are planning
to invest in a series of projects to develop around 4 trillion
cubic feet of discovered natural gas resources from the block.
At current international liquefied natural gas (LNG) prices, it
would cost more than $50 billion to import this volume of gas
into India. This plan, when implemented, would entail a
potential total investment in excess of $5 billion over the next
three to five years.
Leading the largest-ever trade delegation from the UK to any
country, British Prime Minister David Cameron said: “BP is
already the largest single British investor in India and the
decision to join forces with Reliance Industries to invest $5
billion in the next few years into India’s gas markets
reinforces how two of Britain’s and India’s leading companies
can work together to invest in and supply the energy needs of
the future, creating jobs and boosting prosperity.”
“Gas from these projects will deliver energy to millions of
Indians and would significantly help India in reducing import
dependence. My ministry is committed to provide necessary
support to promote such investment in the domestic Oil & Gas
sector. We will do the needful to fast track these projects and
help them attain economic viability,” assured Dr Veerappa Moily,
Minister of Petroleum and Natural Gas, Government of India.
Welcoming the Minister’s statement, both Ambani and Dudley
agreed to accelerate the pace of exploration and development
activities as soon as necessary approvals are received.
Mukesh Ambani said: “The BP and RIL partnership is focused on
finding more hydrocarbons and addressing the complexities of the
geology along the east coast of India. We hope to significantly
contribute to India’s domestic production and help the country
attain energy security.”
Bob Dudley said: “We will bring all our expertise in deep water
to explore the prolific gas basins in India and BP looks forward
to a rewarding and successful exploration programme in the
Implementation of the plan will require deployment of advanced
skills, processes and technologies through the combined
partnership of RIL and BP to produce gas from water depths of
more than 1,500 metres.
RIL and BP are confident that development of the existing
discoveries, together with exploration prospects in KG D6 have
the potential to enhance domestic production significantly.
In an historic partnership with RIL in 2011, BP took a 30% stake
in multiple oil and gas blocks in India, including the producing
KG D6 block and the formation of a 50:50 joint venture to source
and market gas in India - India Gas Solutions Private Limited.
The implementation of the various projects in the KG D6
enhancement plan is subject to regulatory and Government
Main features of the KG D6 enhancement plan:
· Potential investment of over $5 billion over the next
three to five years to develop ~4 tcf resources.
· The field optimization plan through compression and
water handling will augment current production starting 2014.
· Development of R-Series and Satellite fields: the
field development plan for the R-Series project has been
submitted to the Government of India for approval; this and
other projects to add incremental production from 2017 and
· Drilling of a prospect in the coming months to test a
possible hydrocarbon pool below the current producing field. If
successful, this could provide additional reserves and be
brought to production, potentially utilising the existing
· In addition, the KG D6 infrastructure has the
potential to be a critical ‘hub’ for the east coast of India.
By the end of 2012, fields in the KG D6 block had produced 2 tcf
of gas and 22 million barrels of oil, which would have cost more
than $35 billion to import into India at current imported crude
oil and LNG prices.
• BP press office, London: +44 (0)20 7496 4076,
• BP press office, New Delhi: +91 11 4375 5000,
• Reliance Press Office: B. Srinivasan, Mumbai: +91 22
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