Reliance Fires Up Gas Production from India's KG-D6 Block

Krishna Godavari Basin
(Click to Enlarge)

Reliance Industries has commenced production of gas from the Dhirubhai 1 and 3 discoveries of the KG-D6 block in the Krishna Godavari Basin, located off the East Coast of India, in the Bay of Bengal.

The gas from offshore is being received at its world class onshore facility at Gadimoga, a small village in the East Godavari district of Andhra Pradesh and delivered to the East West Pipeline of Reliance Gas Transportation Infrastructure Ltd. (RGTIL). With this, RIL has commissioned one of the world's largest deepwater production facility in the same block in which RIL already discovered oil reserves (Dhirubhai - 26) and commissioned trial production earlier.

At peak production of oil & gas, the KG-D6 facility is expected to produce over 550,000 barrels of oil equivalent per day. Production from the Dhirubhai 1 and 3 discoveries of the KG-D6 block will result in a quantum leap towards achieving India's energy security. KG-D6 gas would also substantially reduce wealth transfer from India to other nations due to energy imports and bring down subsidy levels in the fertilizer, transportation and other sectors. Apart from the economic benefits to the nation, the impact of this gas will be significant in helping India in its climate change efforts and achieving a greener footprint.

RIL has started gas production in six and a half years from discovery, in comparison to the world average of 9-10 years for similar deepwater production facilities. This achievement is especially commendable as the Bay of Bengal is known for its extremely hostile weather conditions, inundated with storms, cyclones, waves up to twenty meters in height and subsea currents of over 4 knots, except a fair weather window of four months every year. RIL also had to overcome supply chain challenges and manpower shortages to adhere to tight schedules. Start of production of gas from the KG-D6 block was a complex task, requiring engineering ingenuity to develop critical infrastructure and use of latest cutting edge technology, never experienced in the region before. With this project, RIL has joined a select club of global deepwater operators.

The facilities comprises of wells, sub sea architecture, which are connected by flow lines and production risers to a Control and Riser Platform (CRP) and are tied back to the Onshore Terminal (OT), approximately 60 kms from the gas fields -- amongst the longest tie backs in the world. At the seabed, equipment equivalent to over 110,000 MT tones of steel weight and over 2400 line kilometers of flowlines and umbilicals have been installed to construct a deepwater production system. Subsea installations were carried out by remotely operated vehicles (ROVs) at the sea bed depths ranging from 600 metres to 1200 meters, well beyond diver depths. At the
peak of offshore construction, the largest marine construction spread in the world comprising of 89 vessels was deployed in an area of 400 square km.

Commenting on the start of the gas production, Mr. Mukesh Ambani, Chairman & Managing Director, Reliance Industries Limited said, "This is a momentous occasion for India. Reliance takes great pride in this success. Reliance has created history and has once again demonstrated its ability to implement complex projects at par with the best performance benchmarks in the world. The clean energy from the Dhirubhai 1 and 3 discoveries of the KG-D6 block will be a boost for energy security and growth of India. We wish to acknowledge and thank all our stakeholders including the Government of India, the Directorate General of Hydrocarbons and our project partners for their continued support."

The initial production of gas from the Dhirubhai 1 and 3 discoveries of the KG-D6 block will be sold to existing gas starved Fertilizer and Power companies resulting in substantial reduction in subsidy burden of the Government.

The KG-D6 block (KG-DWN-98/3) in Krishna Godavari basin was awarded to RIL and Niko consortium under NELP-I. RIL holds 90% Participating Interest (PI) and Niko Resources Limited holds 10% PI in the block.

RIL's partners in the project execution were Aker Kvaerner Group, Allseas, Afcons, Bechtel, Cameron, GE, Halliburton, Hellix, L&T, McDermott, Schlumberger, Siemens, and Transocean amongst others.

RIL is the largest exploration acreage holder in the private sector in India. Its E&P assets consist of 54 blocks spanning eight countries.


Related Companies
 Company: Aker Kvaernermore info
 - Reliance Fires Up Gas Production from India's KG-D6 Block (Apr 2)
 - Sonardyne Snags Life-of-Field Contract for Petrobras' Cascade, Chinook (Feb 18)
 - Lamprell's Revenue Up 29.3% in First Half of 2008 (Sep 29)
 Company: Halliburton Companymore info
 - Halliburton Warns Of First-Quarter Profit Miss As Costs Rise (Mar 24)
 - Halliburton Asks Workers From Banned Countries Not To Travel To US (Jan 31)
 - Shale Frackers' Weak Sales Leave Investors Asking What Growth? (Jan 25)
 Company: McDermott Internationalmore info
 - McDermott Opens New Office in Saudi Arabia; Adds 300 Jobs (Nov 2)
 - Mexico's Sole Platform Fabrication Project to Create Jobs (Sep 27)
 - TH Heavy Engineering, McDermott End Partnership in Malaysia (Sep 26)
 Company: Niko Resourcesmore info

 - ICSID Orders Petrobangla to Pay Niko $35M It Owed for Gas Deliveries (May 31)
 - Reliance Said To Revive Offshore India Gas Project By End-2017 (May 27)
 - Niko Closes Sale of North Ganal PSC Offshore East Kalimantan to Ophir (Feb 11)
 Company: Transocean Ltd.more info

 - Transocean Notes Management Changes (Dec 3)
 - Transocean Has A Third Of Deepwater Rigs Seeking 2014 Work (Nov 21)
 - Transocean's Alaska Rig Contract with Shell Starts July 2014 (Nov 19)
 Company: Reliance Industriesmore info

 - India's Reliance 1Q Net Profit Up 18%, Beats Estimates (Jul 15)
 - Reliance Gets Approval to Drill 8 Exploration Wells Off India's Tamil Nadu (Jul 5)
 - Modi's $27B Oil Quest Gives Services Firms A Lifeline (Jun 28)
 Company: Cameron Corporationmore info
 - EU Clears Acquisition Of Cameron By Schlumberger (Feb 5)
 - Cameron Stockholders Vote Yes to Schlumberger Merger (Dec 17)
 - Fluor Corporation to Acquire 100% of Stork Holding B.V. (Dec 7)
 Company: Siemensmore info
 - Siemens Subsea to Restructure, Cut Jobs in UK (Nov 18)
 - Oil Industry Teams Up to Fight Cyber-Crime (Sep 29)
 - Siemens Trims Job Cut Plans For Unit In Germany (Sep 27)

Our Privacy Pledge

Most Popular Articles

From the Career Center
Jobs that may interest you
United States Williston: Operator Assistant I - Artificial Lift
Expertise: Production Operator
Location: Williston, ND
Operation Shift Supervisor
Expertise: Production Operator
Location: Iowa, IA
United States Houston: Petrophysicist
Expertise: Petroleum Engineering|Petrophysicist
Location: Houston, TX
search for more jobs

Brent Crude Oil : $50.75/BBL 0.09%
Light Crude Oil : $47.73/BBL 0.50%
Natural Gas : $3.05/MMBtu 0.97%
Updated in last 24 hours