New Delhi: Reliance Industries has said that it will start producing natural gas from R-Cluster gas field in the flagging KG-D6 block in the Bay of Bengal from the second half of the 2020-21 fiscal. While giving an investor presentation after its fourth-quarter earnings, Reliance said, “R-Cluster development is on track for first gas in 2H FY21.” It added that four of the six wells from where natural gas will be produced have been completed and the fifth one is being drilled currently. The first offshore installation campaign is underway and is expected to be completed in Q1 FY20.
The second set
All major orders have been committed and engineering work is in progress for the second set, which is called the Satellite Cluster. “Manufacturing of components of Subsea Production System (SPS) has commenced,” it said.
As far as MJ, the third of these fields, is concerned, bids are already underway for major long lead items such as drilling tangibles and FPSO. The company has already committed to adding a rig for drilling of wells on the field.
The KG D-6 block
Reliance operates the block with 60 percent interest, while its partner BP Plc of UK holds 30 percent. Niko Resources of Canada has the remaining 10 percent. Reliance and BP had invested Rs 40,000 crores in the three sets of discoveries to reverse the declining production in KG-D6 block. These discoveries were expected to bring a total 30-35 million cubic metres (1 billion cubic feet) of gas a day onstream, phased over 2020-22.