Reliance steams ahead with R-Series development

Vol 20, PW 1 (22 Sep 16) Exploration & Production

Reliance never fails to surprise! After giving everyone the impression it has lost interest in E&P in India the Mukesh Ambani promoted conglomerate has revived an (approximate) $3bn development plan for the R-Series and satellite fields that sit within the KG-DWN-98/3 licence.

Bids are due end-September in a limited tender to install a subsea production system, issued to OneSubsea; Technip partnering FMC; GE and Aker Kvaerner. By October 3 Reliance wants bids in a separate tender to supply umbilicals issued on August 2 to Prysmian Group, Oceaneering, Technip and Aker Systems.

Originally set for September 3 this bid deadline was extended for a month on request from potential bidders. A third (limited) tender for the transportation, installation and commissioning of the Subsea Umbilicals, Risers and Flowlines (SURF) was issued on September 5 to Allseas, McDermott, Saipem, Subsea7 and Technip.

For this tender bids must be in by November 8. Reliance first submitted development plans for the R-Series and satellite fields in 2009 but only won firm DGH approval four years later on August 29, 2013 for a FDP then estimated to be worth $3.18bn.

Little moved after that because of disputes with the DGH and a lack of clarity on deepwater and ultra-deepwater gas-pricing. But in March 2016 the government approved a welcome new formula for deepwater gas yielding between $6.80 and $7.08/mmbtu.

This, it seems, encouraged Reliance to resurrect development plans.