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India needs help accessing gas reserves

NEW DELHI, March 21 (UPI) -- Indian energy officials said they may need the help of British energy company BP to address declines in natural gas production from the Krishna-Godavari Basin.

Indian energy company Reliance Industries Ltd. projected a 13 percent decline in gas production from its fields in the Krishna-Godavari Basin.

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Reliance in 2002 discovered the largest natural gas reserves in India in the basin. The largest gas discoveries there yielded 1.8 billion cubic feet of output in 2010 but production has declined since then.

Officials at the Petroleum Ministry in New Delhi said the partnership between BP and Reliance could address some of the problems, reports Indian newspaper The Hindu.

"BP has faced similar issues around the world and its expertise will help Reliance overcome the problem,'' the ministry was quoted as saying.

Reliance officials said the fields have enough reserves in place to reach a peak output of 2.8 billion cf, but the gas is stored in isolated pools that make it difficult to access, the newspaper added.

Petroleum officials said drilling more wells could help but costs may outweigh benefits.

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