BP, Reliance sanction third deepwater KG D6 project off eastern India
NEW DEHLI, India – Reliance Industries Ltd. (RIL) and BP have sanctioned the MJ (D55) project in block KG D6 offshore eastern India.
MJ is a high-pressure/high-temperature gas condensate field in 700-1,100 m (2,297-3,609 ft) of water. Well depth is 4,200 m (13,779 ft). The wells will be connected to a subsea production system, with tieback to an FPSO to process and separate liquids and gas, which will be exported through one of the existing 24-in. trunk pipelines to the onshore terminal. Production is expected to start in mid-2022.
MJ is the third of three projects in the block KG D6 integrated development plan. The first project, R-Series, was sanctioned in June 2017. The second project, Satellites cluster, was sanctioned in April 2018.
Together the three projects are expected to develop about 3 tcf of discovered gas resources with a total investment of circa INR 35,000 crore ($5 billion). When fully developed, the projects are expected to produce about 1 bcf/d of gas by 2022.
The R-Series project is in the execution phase. All six wells have been drilled, and the first installation campaign has been completed. During the campaign, a 54-line km, 18-in./4-in. piggyback flowline was installed in 1,920 m (6,299 ft) water depth. According to the companies, this set a world record for deepwater pipelay installation. First gas is on-schedule and expected by mid-2020.
All major contracts have been awarded for the Satellites cluster project. First gas is expected by mid-2021.
The companies said gas production from the KG D6 integrated development is expected to help reduce India’s import dependence and amount to more than 10% of the country’s projected gas demand in 2022.