BP, Reliance Industries Will Aim To Quadraple Gas Output In India By 2020: Executive

BP, Reliance Industries Will Aim To Quadraple Gas Output In India By 2020: Executive
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Τετ, 11 Δεκεμβρίου 2013 - 18:18
Reliance Industries Ltd. (500325.BY) and joint-venture partner BP PLC (BP.LN) will invest up to $10 billion to quadruple their natural gas output in India by 2020, the head of BP PLC's Indian unit said Wednesday.
Reliance Industries Ltd. (500325.BY) and joint-venture partner BP PLC (BP.LN) will invest up to $10 billion to quadruple their natural gas output in India by 2020, the head of BP PLC's Indian unit said Wednesday.

Seeking technology for deep drilling, Reliance had sold a 30% stake in 21 oil and gas blocks across the country to BP PLC for $7.2 billion in 2011.

The two companies have relinquished 15 blocks citing poor prospects, according to a Reliance Industries executive who did not want to be identified.

"We see huge potential in the blocks that we have...It is possible to take it (production) to a much higher ?level," said Sashi Mukundan, country head of BP Plc, told reporters on the sidelines of an energy conference.

He said the two companies will be investing between $5 billion to $10 billion over the next six years to quadruple their output from the current level of about 12 million metric cubic metres a day (MMSCMD)?, which comes entirely from India's east coast block of KG-D6, the country's richest gas deposit.

Production in the east coast block has declined from nearly 70 MMSCMD in early 2010. The companies have cited geological complexities as the main reason for the output fall.

Mr Mukandan said that the planned investments would raise the output from the east coast block as well as others in the country.

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