BP Plc has written down the value of its investment in eastern offshore KG-D6 block by $830 million, following a lower-than-expected gas price hike.
As Reliance Industries and its partner BP plc of the UK are working together, they may have been able to arrest the steep decline in output from their main gas field in the eastern offshore KG-D6 fields. Sources in the Union Oil Ministry said that it was anticipated that the production from KG-D6 will drop to about 11 million standard cubic meters per day by October but that is not happening. The output is around 13.4 mmscmd and is unlikely to drop below 13 mmscmd, the sources added.
The Union government has on August 29 gave its approval to Reliance Industries and its partners to invest $4 billion in the R-Series gas-field of KG-D6 block. BP Plc and Niko Resources are the Reliance Industries partners. R-series is a cluster of four discoveries in the block, of which, D-34 has been declared commercially viable.