Reliance Industries and BP have announced that production has begun at the Satellite Cluster gas field in block KG D6 off the eastern coast. The satellite cluster is second project to come onstream, after R Cluster in December 2020, Reliance Industries said in a regulatory filing to the stock exchanges on Monday.
RIL and BP have been jointly working on three deep-water gas projects in block KG D6 i.e. R Cluster, Satellite Cluster and MJ. These will collectively produce natural gas worth around 30 mmscmd (1 billion cubic feet a day) by 2023 and account for up to 15 per cent of India’s gas demand.
Reliance Industries is the operator of the KG D6 block, with a participating interest of 66.67 per cent and BP holds the remaining 33.33 per cent.
The Satellite Cluster gas field is situated around 60 km from the existing onshore terminal at Kakinada on the east coast, in water depth of up to 1,850 metres. The field will produce gas from four reservoirs, with the help of five wells. It is expected to reach gas production of up to 6 mmscmd.
The R Cluster and Satellite Cluster are together expected to contribute about 20 per cent of India’s current gas production. MJ is expected to come onstream in the latter half of 2022.
Reliance Industries is the largest private sector conglomerate in India, with interest spanning hydrocarbons, petroleum refining and marketing, retail and digital services. And BP is one of the largest global energy companies operating in the country.
At 11:45 am, the shares of Reliance Industries were trading at Rs 1,946.80, higher by 2.3 per cent, on the BSE, as against a 1.2 per cent rise in the benchmark indices.