Reliance to start gas production from R-Cluster next year

New Delhi: Reliance Industries has said that it is going to start the production of natural gas from its R-Cluster gas field from the second half of the 2020-21 fiscal. The field is located in the flagging KG-D6 block in the Bay of Bengal. Reliance Industries is the operator of the block with 60 per cent interest while BP holds 30 percent stake. Niko Resources of Canada has the remaining 10 per cent.
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"R-Cluster development is on track for first gas in 2H FY21," Reliance said in an investor presentation. R-Cluster will be the first to come on stream.

What's the status of the other set of fields?

The second set in the cluster of fields is called the Satellite Cluster. All major orders have been committed and engineering work is in progress for the Satellite Cluster, Reliance said. "Manufacturing of components of Subsea Production System (SPS) has commenced."

For the third of these fields, called MJ, bids for major long lead items such as drilling tangibles and FPSO is underway. Reliance also said that adding a rig has already been committed for the drilling of wells on the field.

The backdrop

Reliance and BP Plc of UK had said in June 2017 that they would invest Rs 40,000 crores in the three sets of discoveries to reverse the flagging production of KG-D6 block. These discoveries were expected to yield a total of 30-35 million cubic metres (1 billion cubic feet) of gas a day onstream, phased over 2020-22.

Out of the six planned wells that would produce gas from the field, four have been completed. The fifth one is being drilled currently, Reliance said. Reliance has so far made 19 gas discoveries in the KG-D6 block.