At a recent meeting, a block management committee approved the proposed investment of $4 billion by Reliance Industries and its partners to produce natural gas from the D34 blocks in KG-D6 basin.
The partners of RIL in this venture are BP Plc and Niko Resources. D34, which is part of the R-Series gas-field in the block, was declared commercially viable. R-series is a cluster of four discoveries.
According to an estimate, D34 holds an in-place reserve of 2.2 trillion cubic feet and recoverable reserves of 1.191 trillion cubic feet.
While the original investment plan was $3.18 billion, RIL raised it to $4 billion considering the increase in input costs.
Though the rate of production is not yet known, indications are that it could be close to the combined current production from block Â— 13 mmscmd (million standard cubic metres a day).
The investment could enable RIL reverse the decline in gas output from the KG D6 gas field.
Earlier, the government asked RIL to drill, complete and connect more wells, and undertake appropriate remedial measures to revive the sick wells in the D1, D3 and MA fields.