Offshore staff
(Asia) - The companies are said to be in talks about the area in the Krishna Godavari basin with Reliance Industries, India's largest private sector gas explorer, according toThe Financial Times.
The field, which is India's largest gas discovery in 30 years, is worth $4 billion.
Lord Browne, BP's CEO, said the firm wanted to raise its profile in India and praised the Krishna field.
Lord Browne toldThe Financial Times that BP was looking at a number of options to develop its business in India, spanning E&P and refining.
"It is an important set of discoveries in a world-class basin," he said of the Krishna field, which is in the Bay of Bengal. "It would be good if BP were represented there."
Reliance discovered the field in 2002 and subsequently sold a 10% stake in it to Canadian firm Niko Resources.
Although production is unlikely to begin before 2008, the project is potentially highly lucrative.
The field holds an estimated 6,000 bcf of proven and probable reserves, while the ultimate yield could potentially be twice as large, according to energy analysts Wood Mackenzie.
India needs to develop its own energy resources to help sustain its rapid economic growth. It currently produces less than half of the gas it needs.
10/19/05
