RIL, BP bank on $5 bn investment to reverse fall in output
According to a joint statement from Reliance Industries (RIL) and BP, their jointly proposed $5 billion investment includes testing of a new layer of natural gas under the rapidly depleting fields in the KG-D6 fields.
Both the firms agreed to invest jointly of $5 billion in the next few years to boost natural gas output in the flagging Krishna Godavari (KG) D6 basin gradually from 2014.
The statement said "optimisation" plan from the existing field will reverse the fall in D6 output from next year, while other developments in the same block will deliver results by 2017.
Mukesh Ambani, Chairman of RIL said the firm's partnership with BP is focused on finding more hydrocarbons and addressing the complexities of the geology along the east coast of India.
It may be noted that BP CEO Bob Dudley is a member of the business delegation accompanying British Prime Minister David Cameron.
Dudley said RIL and BP would bring all expertise in deep water to explore the prolific gas basins in India and BP looks forward to a rewarding and successful exploration programme in the coming years.
Both the firms expect the union oil ministry to resolve the pending issues including approvals for the D6 block.