Reliance Industries (RIL) share price rose in early trade on April 26 after the company and BP announced the commencement of production from the Satellite Cluster gas field in block KG D6, situated off India's eastern coast.
"Reliance Industries (RIL) and BP announced the start of production from the Satellite Cluster gas field in block KG D6 off the east coast of India," RIL said in its release.
RIL and BP have been developing three deep-water gas developments in block KG D6 – R Cluster, Satellite Cluster and MJ – which together are expected to produce around 30 mmscmd (1 billion cubic feet a day) of natural gas by 2023, meeting up to 15% of India’s gas demand, the company said.
The developments will each utilize the existing hub infrastructure in the KG D6 block.
RIL is the operator of the KG D6, block with a 66.67 percent participating interest, and BP holds a 33.33 percent participating interest.
The Satellite Cluster is the second of the three developments to come onstream, following the start-up of R Cluster in December 2020. It had originally been scheduled to start production in mid-2021.
The field is located about 60 km from the existing onshore terminal at Kakinada on the east coast of India in water depths of up to 1850 meters.
The field will produce gas from four reservoirs, and is expected to reach gas production of up to 6 mmscmd, RIL said.
"Together, the R Cluster and Satellite Cluster are expected to contribute to about 20 percent of India's current gas production," RIL said in the statement.
The third deep-water gas development in the KG D6 block - MJ - is expected to come onstream towards the second half of 2022.
At 09:34 hrs, Reliance Industries was quoting at Rs 1,929.50, up Rs 25, or 1.32 percent on the BSE.
The share touched a 52-week high of Rs 2,368.80 and a 52-week low of Rs 1,335.29 on 16 September 2020 and 24 April 2020, respectively.
Currently, it is trading 19.26 percent below its 52-week high and 43.23 percent above its 52-week low.
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