Reliance to produce new gas from D6 by June end

11 May 2020

Reliance Industries and its partner BP Plc of UK have pushed back the start of production from the second wave of discoveries in their eastern offshore KG-D6 block to end June because of restrictions on movement of people and material the nationwide lockdown has imposed.

At current Brent oil price of around $26 per barrel, the gas from R-Series field in KG-D6 block will cost about $2.2 per million British thermal unit lower than even the government mandated rate of $2.39 for gas from state-owned ONGC fields.

In an investor presentation post its fourth-quarter earnings, Reliance said it is working on three projects in the KG-D6 block, where production from older fields stopped in February this year.

"First Gas from R-Cluster field expected by June 2020 subject to lifting of lockdown," it said.

Gas production from R-Cluster was to start by mid-May but the coronavirus lockdown has delayed it. Reliance said it expects to achieve a peak output of around 28 million standard cubic metres per day by FY24 when all three projects are up and running.

Reliance and BP are developing three sets of discoveries in KG-D6 block -- R-Cluster, Satellites, and MJ by 2022.

R-Cluster will have a peak output of 12 mmscmd while Satellites, which are supposed to begin output from mid-2021, would produce a maximum of 7 mmscmd. MJ field will start production in second half of 2022 and will have a peak output of 12 mmscmd.