- Reliance Industries shares gain after Q2 profit beats estimatesReliance Industries shares gain over 3 pct after quarterly profit beats estimatesReliance Industries quarterly profit up 1.5 pct, meets estimatesMukesh Ambani's Reliance Industries logs rise in profit, turnover tops Rs 1L cr
RIL said the D34 discovery, which holds 1.2-1.4 trillion cubic feet of gas reserves, will start producing in four years with peak output of 12 million standard cubic meters per day.
The reserves in D34 discovery are one-third of the revised inplace volumes at the main Dhirubhai-1 and 3 (D1 & D3) gas fields in KG-D6 block. The envisaged peak output is more than D1&D3's current production of 10 mmscmd.
In an investor presentation after declaring financial results for July-September quarter, RIL said the D34 find was made in 2007 and a field development plan was submitted to authorities in January this year.
The investment plan was "approved by Management Committee (MC) of KG-D6 block in August 2013," it said.
RIL and its partner BP plc of UK plan to quickly bring satellite fields in the KG-D6 block to production to help reverse the decline in output.
The duo are investing USD 1.529 billion in four other satellite fields that can produce 10 mmscmd.
D34 and the four satellite are expected to begin producing around the same time in 2017-18.
RIL said it will drill 8 development wells on D34 and lay a pipeline to take the gas to the existing facilities of D1-D3 fields from where it will be transported onshore.
"Estimated capex is USD 3.2 billion excl. taxes/duties," it said. "Gas production rate (envisaged is) up to 12 mmscmd, first gas expected in 4 years."
RIL, the operator of KG-D6 block with 60 per cent interest, had on January 30 submitted the Field Development Plan (FDP) for D-34 field to oil regulator DGH.
DGH after examination trimmed down the recoverable reserves to 1.191 Tcf from 1.413 Tcf estimated by RIL. Also, the peak output was lowered from 14.9 mmscmd estimated by RIL.
The Dhirubhai-34 or D-34 gas discovery in the southern part of KG-D6 block in Krishna Godavari basin was notified in May 2007. The find was declared commercially viable by MC in November 2011.
RIL has so far made 19 gas discoveries and 1 oil find in the KG-D6 block. Of these, D1&D3 gas fields were brought to production in April 2009 while MA oilfield began pumping oil in September 2008.
D-34 is part of what is known as R-Cluster