INDIAN GAS INVESTMENT: $6 BLN
OGJ - BP PLC and Reliance Industries Ltd. (RIL) have agreed to expand their energy partnership in India and will move forward in developing already-discovered deepwater gas fields.
The firms will award contracts to advance development of the R-Series deepwater gas fields on Block KGD6 offshore eastern India. The R-series (D34) project is a dry gas development in more than 2,000 m of water about 70 km offshore. The fields will be developed as a subsea tieback to the existing control and riser platform off Block KGD6. The project is expected to produce as much as 12 MMcfd of gas coming on stream in 2020.
It's the first of three planned projects on Block KGD6 that are expected to be developed in an integrated manner, producing from about 3 tcf of discovered gas resources. RIL and BP plan to submit development plans for the next two projects for government approval before yearend. Development of the three projects, with total investment of $6 billion, is expected to bring a total 1 bcfd of new domestic gas production on stream, phased over 2020-22.
BP and RIL partnered in 2011 when BP acquired 30% interest in multiple oil and gas blocks in India operated by RIL, including the producing Block KGD6. RIL currently operates KGD6 with 60% interest, while BP still holds 30% and Niko Resources Ltd. has the remaining 10%.
BP and RIL together invested $1.6 billion in deepwater exploration and production from 2011 through this May. In addition to the D55 gas discovery in 2013, the partnership has sustained production from the geologically complex reservoirs in D1D3 and D26 fields on Block KGD6.
As part of the expanding partnership, the firms also will jointly explore options to develop differentiated fuels, mobility, and advanced low-carbon energy businesses in India.
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REUTERS - Brent crude futures LCOc1 were down 72 cents at $61.49 per barrel at 1020 GMT, having fallen by 1.5 percent on Tuesday, its largest one-day drop in a month. U.S. West Texas Intermediate (WTI) crude CLc1 was at $55.12 per barrel, down 58 cents.
BLOOMBERG - Prices dropped during the session as the International Energy Agency said the recent recovery in oil prices, coupled with milder-than-normal winter weather, is slowing demand growth. The worsening outlook for consumption dampened some of the enthusiasm that OPEC and its allies will extend supply curbs.
Global energy needs rise more slowly than in the past but still expand by 30% between today and 2040. This is the equivalent of adding another China and India to today’s global demand.
Product exports have grown significantly over the past several years and are expected to continue to grow as Russian refineries add capacity to produce more high-quality products.