A plan of Reliance Industries and BP has been approved by the Union government to invest $3.18 billion in R-series gas field in the KG-D6 basin in Andhra Pradesh, which is expected to produce up to 13 million standard cubic metre gas, said the government and industry officials. As per the approved plan, the field is estimated to hold about 1.2 trillion cubic feet of recoverable gas reserves.
The plan proposal for approval was pending with the government since January and recently the management committee of the block, which is headed by the director general of hydrocarbons, gave its nod to the operator to execute the plan to develop the satellite fields, collectively known as R-series.
RIL is the operator of the block with 60 per cent stake. The companies are asked to expedite development of R-series discoveries to reverse falling output from the block, which fell to little less than 14 mmscmd from 62 mmscmd in March 2010. Currently, gas is produced from D1, D3 and MA fields in the KG-D6 block, the company said.
RIL and BP would take minimum three-four years time to start output from the field because the block is located in the turbulent deepwater, where fabrication works can be done only between December and April.
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