New Delhi: Reliance Industries Ltd.
(RIL) will begin production of natural gas from MJ Field – a collection of the latest and final discoveries developed by the company in the KG-D6 block off the east coast – in the last quarter of 2022 to increase the overall output of around two thirds.
In the presentation of investors announced first quarter revenues, RIL said he had completed the first offshore installation campaign and the second will begin in November this year.
“Drilling and completion of the well (being),” he said.
“The first gas is estimated by 3Q FY23.” The 2023 fiscal year began in April 2022 and the third quarter will be October-December 2022.
RIL and its partner BP PLC plans to use a floating production system in the high sea in the bengal bay of discoveries in the KG-D6 block.
The findings of the MJ-1 gas are located around 2,000 meters just below the Dhirubhai-1 and 3 (D1 and D3) fields – the first and biggest fields in the KG-D6 block.
MJ-1 is estimated to have a minimum of 0.988 trillion cubic feet (TCF) contingent resources.
The field also has oil deposits that will be produced using the floating system, called FPSO.
“FPSO and underwater production system (located) on the track,” said the company in the presentation.
RIL-BP is developing three deep gas developments in KG-D6 – R Cluster blocks, Satellite Cluster and MJ – who are together are expected to produce around 30 million cubic meters of the standard of natural gas in 2023, meet up to 15 per 15 per cent of Indian gas demand.
The R-Cluster began production in December 2020 and the satellite cluster came DISTREAM in April.
While the R-cluster is expected to achieve highland gas production of around 12.9 mmscmd in 2021, the satellite cluster will have a peak output of 6 mmscmd.
MJ Field will have a 12 MMSCD peak output.
RIL said the average production in April-June this year was 16.6 mmsmd from kg-d6.
The company has three rounds of offers sold 18 MMSCMD gas from the fields, he said.
RIL Conglomerate oil-to-telecommunications so far made 19 discovery of gas in the KG-D6 block.
Of these, D-1 and D-3 – the biggest of many – was brought to production starting April 2009 and MA, the only oil field in the block, was included in production in September 2008.
While the Supreme Court stopped production in 2019, The output of D-1 and D-3 stopped in February 2020.
Other discoveries have been submitted or taken by the government because they do not meet the schedule for initial production.
RIL is a block operator with the interests of participating 66.67 percent and BP holds 33.33 percent of the shares.
The company in the presentation said it received USD 3.62 per million British thermal units for KG-D6 gas in the April-June quarter.
This is lower than USD 3.99 per mmbtu obtained in the previous quarter.
For gas produced from under the coal layer in the CBM block in Madhya Pradesh, gets USD 6.01.
In January-March, the company received USD 5.20 per MMBTU for Methane Bed Coal (CBM).
Rates vary because companies use different pricing formulas to provide gas prices from KG-D6 and CBM.