BP (LON:BP) and Reliance are expected to start commissioning of the MJ gas development in the KG D6 deepwater Block offshore eastern India later this year. The MJ field will have an annual average production capacity of 90 million barrels of oil equivalent per day (boed).
Reliance said in its quarterly results that final offshore sub-sea production system installation is in progress and expected to be completed by September. The floating production storage and offloading (FPSO) unit is ready for sail-away from South Korea and expected to arrive during this quarter. While lower and upper well completion has started. Off-shore hook-up, pre-commissioning and commissioning is expected between October and December 2022.
Reliance and BP have been developing three 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% of India’s gas demand. The developments will each utilise the existing hub infrastructure in the KG D6 block. Reliance is the operator of the block with a 66.67% participating interest and BP holds a 33.33% participating interest.
The MJ field is one of the three new deepwater fields developed as part of the KG-D6 Block integrated development project. The other two fields include the R-Cluster and Satellites Cluster, which are already producing.
During the April-June quarter the average gas price realised for KGD6 was at $ 9.72/MMBTU versus $ 3.62/MMBTU over the same period a year ago.
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