BP and Reliance Industries strengthen ties

On Thursday, BP and partner Reliance Industries (RIL) announced they would be advancing the development of R-series deepwater gasfields offshore India.

In a press release, BP and RIL said they would be awarding contracts in order to kick off the first of three projects in Block KGD6. The first development, centred on dry gas in 2,000 metres of water some 70 kilometres off India’s east coast, is set to produce 12 mcm (425 mcf) per day once on stream in 2020.

The R-series fields will be utilising the RIL-operated block’s control and riser platform via subea tieback. Representing a combined investment of USD 6 billion, the three projects are projected to add close to 30 mcm (1 bcf) in domestic natural gas output between 2020 and 2022.

The partners expected to be able to submit plants for the two follow-up stages for approval before the end of the year.

“This is an important step forward for BP in India. Working closely together, Reliance and BP are now able to develop these major deep water gas resources offshore India efficiently and economically,” BP Group Chief Executive Bod Dudley said in comments.

RIL Chairman and Managing Director Mukesh Ambani said, “We are delighted to progress these developments, which will provide India with much needed indigenous energy and support the Prime Minister’s call for import substitution and the development of a gas-based economy.”

BP and RIL also used the joint statement to announce their intention to increase strategic co-operation to cover India’s entire energy sector, including electrification efforts and work on digitalistion.

“India’s demand for both energy and mobility is growing and evolving rapidly. This presents many opportunities for BP and Reliance to build on our existing strong relationship in upstream and expand our partnership further downstream,” Dudley said.

BP and RIL joined forces for the fields in Block KGD6 in 2011, with BP taking a 30% stake. With 60%, RIL is the operator while partner NIKO holds the remaining 10%.