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MILESTONE: Mukesh Ambani, Chairman, Reliance Industries Ltd with P.M.S. Prasad, President & CEO Oil and Gas, Reliance Industries Ltd display the oil found in KG-D6 Block of Krishna-Godavari Basin, at a press conference in Mumbai on Sunday.
Mumbai: Reliance Industries Limited (RIL) began production of crude oil at KG-D6 block of the Krishna Godavari basin on September 17.
“The field is initially producing about 5,000 barrels of crude a day and is expected to reach its peak hydrocarbon production of 5,50,000 barrels of oil equivalent a day over the next six to eight quarters,” said Mukesh Ambani, Chairman, RIL.
A first-of-its-kind hydrocarbons production from any deep water field in the country, Reliance KG-D6 will account for 40 per cent of country’s current indigenous hydrocarbon production in about 18 months. RIL estimates that the production from the KG-D6 facility will save India an annual foreign exchange outflow of $20 billion. The company’s refinery will begin production in the next few months and gas production will commence from early 2009.
The KG-D6 Block is located in the Bay of Bengal 50 km off the Kakinada coast, at a depth of 8000 ft. RIL has begun oil production in KG-D6 in just over two years from the time of oil discovery, making it one of the fastest green field deep water oil development projects in the world.
The company said production had been achieved against challenges such as difficult ocean conditions, lack of adequate sub-sea data, low seabed, severe temperature, supply chain constraints and shortage of technical manpower. The first vessel of its kind in Indian waters, Dhirubhai-1 has the capability to operate in water depths of greater than 1200 metres with features that can help withstand harsh sea environment.
The KG-D6 block (KG-DWN-98/3) was awarded to RIL under NELP-I. RIL holds 90 per cent Participating Interest (PI) and Niko Resources Limited holds 10 per cent in the block.
Reliance is the largest exploration acreage holder in the private sector in India. Its exploration & production (E&P) assets consist of 54 blocks spanning eight countries. With 42 discoveries to date, Reliance has a success ratio of over 60 per cent.
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