RIL, BP get approval for investment in KG Basin

The Directorate General of Hydrocarbons (DGH) official panel has approved $4-billion investment plans by Reliance Industries and BP to develop three sets of natural gas discoveries in the KG Basin.

“Management committee has today approved 3 FDPs (field development plans) in block KG-DWN-98/3 (RILBSE -1.05 %, BP & Niko), which will bring an envisaged capex investment of around $4 billion (Rs 26,000 crore) in the prolific eastern offshore of India,” DGH announced.

Before beginning to develop an oil or gas field, companies prepare a field development plan and seek its acceptance by a management committee comprising representatives of the companies as well as the oil ministry and DGH. Only after a nod from the management committee, companies can begin developing these fields. With 60% stake, Reliance is the operator of the KGDWN-98/3 or KGD6 block. BP holds 30% and Niko 10% in the block.

Three field development plans relate to MJ and two clusters referred to as satellite fields, according to a BP spokesperson. These three projects are expected to start producing from 2022 and will together have a peak output of around 20 million metric standard cubic meters per day.