Reliance, bp Start Production at Satellite Cluster Gas Field in India’s KG D6 Block

Mukesh Ambani-led Reliance Industries Ltd (RIL) and international energy giant bp have jointly started the production from the Satellite Cluster gas field in block KG D6 off the east coast of India. This is the second new deepwater gas field in the block.

The two organisations have been developing 3 deep-water gas developments in block KG D6 – R Cluster, Satellite Cluster and MJ – which together are expected to produce around 30 mmscmd (1 billion cubic feet a day) of natural gas by 2023, meeting up to 15 per cent of India’s gas demand.

The developments will each utilize the existing hub infrastructure in the KG D6 block. RIL is the operator of the block with a 66.67 per cent participating interest and bp holds a 33.33 per cent participating interest.

The Satellite Cluster is the second of the 3 developments to come on-stream, following the start-up of R Cluster in December last year.

Moreover, it had originally been scheduled to start production in mid-2021. The field is located about 60 km from the existing onshore terminal at Kakinada on the east coast of India in water depths of up to 1,850 meters.

The field will produce gas from four reservoirs utilizing a total of 5 wells and is expected to reach gas production of up to 6 mmscmd. Together, the R Cluster and Satellite Cluster are expected to contribute to about 20 per cent of India’s current gas production.

The third KG D6 development, MJ, is expected to come on-stream towards the latter half of 2022.

In addition to their gas value chain partnership in 2020, bp and RIL also completed the formation of their major retail, aviation fuels and mobility alliance.

bp’s activities in India also include Castrol lubricants, oil and gas trading, clean energy projects through Lightsource bp, IT back office activities, a new global business services center, staffing and training for the global bp marine fleet, and the recruitment of skilled Indian employees for bp’s global businesses.