Construction has begun and should be completed in the first quarter of 2017, with commercial operations beginning later in that year, a statement said.
Currently, the market is well-supplied and prices above $114 a barrel are the result of market nervousness, OPEC Secretary General Abdullah al-Badri said.
Under the proposed new arrangement, the Reserve Bank of India would buy the dollars from authorised currency dealers, instead of the Indian oil buyers tapping the currency market.
The Berri gas plant includes three gas-oil separation plants, five new and 10 upgraded offshore platforms, 35 drilling islands and a 140MW co-generation plant.
A large part of the investment to increase output will need to come from the Middle East as a rise in non-OPEC production such as U.S. shale oil starts to lose steam in the mid-2020s.