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RIL, BP offer condensate from KG-D6 basin
Indian private-sector refiner Reliance Industries (RIL) and BP are offering seven condensate cargoes from “difficult fields” in the Krishna-Godavari (KG) basin off India’s east coast through an e-auction.
Each cargo will consist of 500,000 bl of condensate, and the e-auction will be held on 23 November, according to a tender notice from both firms published on 8 November.
The government considers deepwater, ultra-deepwater as well as high-pressure and high-temperature fields as “difficult fields”.
Supplies will start from 27 November. The condensate will be priced on a formula linked to Dated Brent. RIL and BP have shifted to oil indexation and have linked their pricing to Dated Brent prices against northeast Asian spot LNG prices.
This will be the first time the firms sell condensate from the KG-DWN-98/3 block in the KG basin. Condensate consists of a variety of very low-density liquid hydrocarbons that typically occur along with natural gas.
The cargoes will be shipped from the Ruby floating production, storage and offloading (FPSO) facility near Kakinada.
RIL and BP recently offered 4mn m³/d of gas from “difficult fields” through an e-auction to be held on 21 November, taking total gas sale offers from the block to 16mn m³/d so far this year.
Gas output from KG-D6 averaged 28.3mn m³/d during July-September, up by 50pc on the year, RIL said, taking total January-September output to 75.3m³/d, up by 26pc on the year. The average price realisation for gas from KGD6 was $10.46/mn Btu during July-September, slightly lower than the average Asian LNG price of $11.60/mn Btu during the same period.
RIL expects natural gas production from the KG-D6 block to rise to 30mn m³/d in the April 2023-March 2024 fiscal year, accounting for 30pc of India’s overall gas production and 15pc of the country’s gas demand.
RIL and BP have jointly developed three main gas fields in the KG basin. RIL owns around 67pc of the KG-D6 fields, with the rest owned by BP.
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