The BP and Reliance Industries Ltd joint venture is looking at investing a whopping USD 5 billion in order to boost output at D6 block in Krishna Godavari (KG) basin. The joint venture is putting in efforts towards exploring one of the major natural gas fields at the east coast of India.
The British energy major and India's Reliance Industries together are planning to invest in a series of initiatives, in coming 3 to 5 years. The proposal intends for developing around 4 trillion cubic feet (Tcf) of already discovered natural gas resources from the block.
For past two years, Reliance has been experiencing declining output at the D6 block, with production dropping 37 per cent to 275 billion cubic feet (Bcf). The latest investment plans for KG-D6 block is anticipated to increase the production and benefit India by reducing the dependency on import.
With BP having 30 per cent stake in Reliance operated 23 oil and gas blocks and former's technology team to aid in technical issues; the two firms are also bringing in satellite projects to make the upcoming oil and gas initiatives, a success. Moreover, the companies are also geared up for drilling more wells to bring out the hydrocarbon potential in the existing fields.
The investment program is also hoping to be fruitful for BP as the company is trying to strengthen its foothold in growing energy markets, like India. These projects are subject to approval by the Indian government.