Mukesh Ambani led Reliance Industries Limited (RIL)is planning to invest $6.5 billion in its KG-D6 gas fields located on the eastern coast of the country. The company plans to reach the natural gas production level of 60 mmscmd by 2019-20 and become a strong supplier to domestic demand.
RIL had begun the production in its fields in April 2009. “We can attain a production level of 40 to 60 million standard cubic meters per day (mmscmd) by 2019-20 provided we get timely approvals and the right natural gas price,” said B Ganguly, RIL President and Chief Operating Officer (E&P). The increase in output is required to cater to the sprawling domestic demand of natural gas. High demands of petroleum and natural gas have forced the government to import energy from foreign nations.
So, RIL has planned to increase the production capacity of Dhirubhai-1 and Dhirubhai-3 (D1&D3) and MA fields located in KG-D6 blocks. It will invest $3.155 billion in further producing 20 mmscmd of gas from R-Series discoveries in the fields. In addition to this, there are four satellite fields discovered that will produce 10 mmscmd of natural gas. These satellite fields will be receiving an investment of $1.529 billion. To focus on expanding its natural gas and petroleum capacity, RIL will invest $1.2 billion to look out for new energy sources in the KG-D6 blocks.
“First gas from the satellite developments is expected in mid 2017-18,” said Ganguly. A new field, MJ1, has also been discovered beneath D1 & D3 field recently. The details of the production capacity of this new field have not been taken into consideration as of now, as the block is under analysis as of now. Initial reports about MJ1 reveal that it may hold 2-3 trillion cubic feet of reserves that is almost equivalent to the currently operational reserves in D1 & D3 fields.
Apart from new discoveries and expanding the current capacity, RIL will also invest $747 million in augmenting production from D1 & D3 and MA fields by imbibing new technology of booster compressor. In addition to this, $6.151 billion will be spent as operational expenses. Till date, RIL has made total investment of $7.452 billion in development of D1 &D3 and MA fields, $1.261 billion in operational costs and $1.094 billion in exploring for new source of oil and gas in the block.