UK’s BP Plc has written to the government that it can add 15 trillion cubic feet (tcf) to India’s gas reserves in the short and long run along with its partner Reliance Industries Ltd (RIL). These gas reserves, BP said, can help the country unlock $150 to $225 billion in import substitution.
In the short run, BP has assured the government of doubling its existing gas production of around 29 million metric standard cubic meter per day (mmscmd) to 60 mmscmd in the next 3-5 years.
“There is currently more than 5 tcf of discovered gas resources in our KG D6 and NEC 25 blocks, which are awaiting approvals,” BP told petroleum and natural gas minister Veerappa Moily. “These discoveries could add another 25-30 mmscmd of potential production in the next 3-5 years following approvals and will unlock $50-$75 billion of value to the nation in import substitution.”
In the long run, BP said it has identified some prospects with RIL, which “if successful, can add over 10 tcf of yet-to-find resources with the potential to unlock $100-150 billion of value through import substitution.” Together, BP promises to unlock $225 billion for the country.
To firm up its investment plans, BP has sought a clarity on pricing of gas in India post March 2014. At present, gas from KG-D6 fields is priced at $4.2 per unit and is due for revision from April 1, 2014.
BP has also told Moily that with its experience in exploration and partnership with Reliance, it will maximise recovery in already discovered fields in KG D6 and NEC 25, besides adding value through new exploration in the blocks along the east coast.