The commencement of production from the MJ field in the Krishna Godavari basin has been announced jointly by Reliance Industries Ltd. and BP Plc.
The MJ field, known for its high-pressure and high-temperature gas and condensate reserves, marks the final deep-water development commissioned by the RIL-BP consortium in the KG D6 block, situated off the east coast of India.
Preceding the MJ field, the consortium successfully commissioned the R-cluster field in December 2020 and the satellite cluster in April 2021. According to a statement issued by RIL on Friday, all three developments have been designed to utilize the existing hub infrastructure for the KG D6 block.
Upon reaching its peak production, the MJ field, along with the R-cluster and satellite cluster, is projected to yield approximately 30 million standard cubic meters (MMSCMD) of gas per day, equivalent to 1 billion cubic feet per day.
The combined peak production from these three fields is expected to constitute around one-third of India's current domestic gas production and cater to roughly 15% of the country's total gas demand, as stated in the same statement.
The field is expected to achieve peak gas production of approximately 12 million metric standard cubic meters per day (MMSCMD) and yield around 25,000 barrels of condensate per day, coming from a total of eight wells.
As per the most recent government notification, high-pressure, high-temperature field gas is subject to a 20% premium above the administered gas prices. This premium advantage will enable Reliance to sell the gas produced from these fields at higher rates compared to other pricing mechanisms regulated by the government.
The development plan incorporates the deployment of a new floating production, storage, and offloading vessel (FPSO) named "Ruby." The FPSO will facilitate the processing and separation of condensate, gas, water, and impurities before the gas is transported onshore for sale. Additionally, the FPSO will store the condensate and offload it to shuttle tankers for supply to Indian refineries.
Mukesh Ambani, the chairman and managing director of Reliance Industries, expressed that the MJ development, in conjunction with the other KG D6 fields, strongly aligns with the 'Make in India' and 'Energy Vision' initiatives outlined by the Government of India.
Bernard Looney, the chief executive officer at BP, emphasized that the collaborative efforts are geared towards fulfilling India's escalating energy demands, harnessing the strengths of each partner to create substantial value.
The MJ field, discovered in 2013 and approved in 2019, is situated in water depths of up to 1,200 meters, approximately 30 kilometers away from the existing onshore terminal at Gadimoga on the east coast of India.
