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Reliance Industries (RIL) and BP Plc, which last month began production of the R-Cluster, an ultra-deep water gas field in the KG D6 block off the east coast of India, saw their oil and gas segment revenues increase in the third quarter of this fiscal year.
The R-cluster currently produces 4.5 million standard metric cubic meters per day (mmscmd).
“Segment revenue for the 3Q FY21 grew 21.4% quarter-on-quarter to ₹431 crore mainly due to the increase in commodity prices and additional production from R-Cluster, ”RIL said in its earnings release Friday.
The segment’s EBITDA margin grew by 0.9% compared to a decrease of (-) 54.6% in the second quarter of this fiscal year. EBITDA (earnings before interest, taxes, depreciation and amortization) is a measure of a company’s operational performance.
Billed as Asia’s deepest offshore gas field with a water depth of over 2,000 meters, the field was initially scheduled to start production in June, but the covid-19 pandemic has delayed those plans.
R Cluster is the first of three projects to be implemented. Located at a water depth of over 2,000 meters, it is Asia’s deepest offshore gas field.
The field is expected to reach a production plateau of around 12.9 mm / cmd during the second half of this calendar year.
Production for the period from December 18, 20 to December 31, 20 is 1.6 billion cubic feet (RIL’s share).
“Gas demand has returned to pre-COVID levels as we continue with the second tender for gas sales,” RIL said.
The next project, the Satellite Cluster, is expected to come into service in 2021, followed by the MJ field in 2022. Peak gas production from the three fields is expected to reach around 30 mmscmd by 2023, or around 25% of national production of gas from India, helping to reduce the country’s dependence on imported gas, RIL said.
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