New Delhi, Nov 5 (PTI) Reliance Industries has awarded amajor contract for bringing to production the R-Series gasfield in the flagging KG-D6 block to US engineering andconstruction company McDermott.
R-Series is one of the three sets of discoveries in theeastern offshore KG-D6 block that RIL and its partner BP plcof UK are working to bring to production by 2021-22 to reversethe declining trend in output.
McDermott on its website confirmed award of the contractbut did not give value of the deal.
The company said it will provide "engineering,procurement, installation and pre-commissioning of subseaflowlines, vent lines, and a pipeline-end manifold forconnection with six subsea wells in the R-cluster field at awater depth of up to 6,890 feet (2,100 meters)."This is the first of three planned projects in KG-D6 thatRIL-BP had announced in June, involving a cumulativeinvestment of Rs 40,000 crore and producing from about 3trillion cubic feet of discovered gas resources.
The R-series (D34) project is a dry gas development inwater-depths of more than 2,000 metres, about 70 kilometresoffshore.
It is to be developed by linking six producing wells withexisting producing facilities at Dhirubhai-1 and 3(D1&D3) gas fields in the block.
"The project is expected to produce up to 12 millioncubic metres of gas a day, coming on stream in 2020," RIL-BPhad said in June.
McDermott said in addition to the R-Cluster of six subseawells, RIL can give it the job of five to seven more subseawells at the Satellite-cluster fields in the KG-D6 block.
"The optional scope also consists of two additionalsubsea structures and flowlines at a water depth between 4,593feet (1,400 meters) and 5,905 feet (1,800 meters)," it said.
McDermott said it plans to leverage its significantexperience and presence within India including its EngineeringCenter of Excellence office in Chennai providing engineeringand project management oversight for the project.
RIL-BP had in August 2013 won approval to invest up toUSD 3.18 billion to produce gas for 13 years from D-34 (R-Series) discovery in the KG-DWN-98/3 or KG-D6 block.
The planned output from D-34, which is estimated to holdan in-place reserve of 2.2 Trillion cubic feet, more thandouble of the combined current production from Dhirubhai-1 and3 (D1&D3) gas field and MA field in the KG-D6 block.
RIL had originally put the recoverable reserves in D-34at 1.413 Tcf that could produce a peak output of 14.9 mmscmd.
However, the Directorate General of Hydrocarbons (DGH) trimmedthe recoverable reserves to 1.191 Tcf and peak output to 12.9mmscmd.
The Dhirubhai-34 or D-34 gas discovery in the southernpart of KG-D6 block in Krishna Godavari basin was notified inMay 2007. The find was declared commercially viable by MC inNovember 2011.
RIL has so far made 19 gas discoveries and 1 oil find inthe KG-D6 block. Of these, D1&D3 gas fields were brought toproduction in April 2009 while MA oilfield began pumping oilin September 2008. PTI ANZ MRMR.
This is unedited, unformatted feed from the Press Trust of India wire.