Global energy giant BP is gearing up to unveil plans for the downstream LNG business next year. It is examining all possibilities through a study of the Indian markets.
Speaking on the sidelines of a media roundtable on the findings of the latest BP statistical review of World Energy 2012, BP India chief Sashi Mukundan said: “We are currently examining the Indian market and would be coming out with our final investment plans for LNG in India in 2013. We are looking at various options and trying to work out the best strategy.”
He further elaborated that the various options the company was looking at included sourcing natural gas from overseas for the Indian market, setting up LNG import terminals on its own or buying stake in existing and upcoming LNG terminals in India.
London-based BP holds a 30 per cent stake in the RIL-operated KG basin which has been in the eye of a storm lately over the continuously falling output from D6 block and audit issues with the Comptroller and Auditor General of India.
KG basin potential
Though steering clear of answering queries on the audit of the KG-D6 basin, Mukundan elaborated on his plans to shore up gas production from the basin.
“We have not given up on KG basin yet. It still has a lot of potential to be explored. Of the total 7,500 square feet area, we have only explored 350 square feet yet. Our focus areas would be base management under which we are looking at putting compressors to extract more gas from D1 and D3 blocks as well as work out a mechanism for drilling out the excess water.”
“Production from the existing D1, D3 and MA fields in D6 block has been declining and would continue to decline. We are also working at the Integrated Field Development Plan to bring in new gas from other fields like R-Series and satellite fields in the block. This plan IFDP would be submitted at the end of this year and we hope to begin production from next year,” he added.