India Inc:
Reliance Industries Limited (RIL) and BP have got the official Indian government nod to pump in over $1 billion into the KG basin in India.
RIL had made an application for three satellite discoveries to be declared viable back in February 2010.
RIL-BP will now have to drill the wells for an appraisal of sustainable production levels of the satellite finds.
Once the finds are declared commercial, RIL-BP can piece together an integrated development plan for the three together with 13 other discoveries.
RIL is the operator of the KG-D6 block with 60 per cent stake while BP has a 30 per cent interest. Niko Resources of Canada has the remaining 10 per cent stake.
With gas output at three currently producing fields of D1, D3 and MA in the KG-D6 block halving to about 29 million cubic meters a day in the past two years, RIL and its partner BP have pinned hopes on developing satellite fields to reverse the trend.
RIL and the UK oil major had struck up an estimated $7.2-billion deal last year for the joint exploration of the basin, off the coast of Andhra Pradesh.
