Genesis to Design RIL’s Deep Water Field in KG Basin

Genesis to Design RIL’s Deep Water Field in KG Basin

Reliance Industries has contracted offshore engineering service provider Genesis to undertake front-end engineering design (FEED) for its deep water field in the KG Basin.

The contract is for developing the MJ field of KG-DWN-983 block where Reliance holds 60% participating interest, according to a statement on the Genesis website. BP and Niko hold 30% and 10% interest in the block, respectively .

The work will be managed from the Genesis head office in London, it said.

Last year, Reliance Industries had invited expression of interest from contractors for the development of its deep water oil and gas fields. This was done following a shift in the government policy, allowing producers to charge a higher price for gas from deep water and other difficult fields, effectively doubling the price from what is available to normal fields in the country.

Those engaged in gas price-linked litigation with the government, however, can’t avail higher prices for their produce. Therefore, Reliance and its partners may have to withdraw the gas price arbitration against the government to take advantage of this policy.

MJ, R and Satellite are three deep water fields in the KG basin that can potentially fetch higher gas prices for Reliance and partners.

The FEED contract for the MJ field “will consider a seven-well gas condensate discovery producing via two subsea drill centres and tied back to a Floating Production, Storage and Offloading (FPSO)“, Genesis said. If Reliance were to withdraw its gas price arbitration, its eight discoveries with reserves of 2.53 trillion cubic feet could benefit from the government’s policy of higher prices for gas from difficult fields.

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