MUMBAI: Reliance Industries chairman Mukesh Ambani on Sunday announced that oil production from KG basin would start early next year, with an initial output of 5.5 lakh barrels a day, and the company would account for 40-45 per cent domestic oil and gas production going ahead.
Making a major announcement on the company's oil and gas operations at a Editors' conference here, Ambani said the gas produced from its KG-D6 block would be offered at a base price of USD 4.2 per mmBtu (or about USD 26 a barrel oil equivalent).
However, there was no clarity on when and what condition the gas could be sold in view of the stay on RIL from selling gas from the block to any third party, pending disposal of a litigation between it and younger brother Anil Ambani's group company RNRL.
Asked if the company could sell the gas in the present condition and if Mukesh Ambani was willing to meet Anil in this connection, RIL spokesperson Paresh Chaudhry said the issue is sub-judice.
As per the available indication, any such meeting is unlikely.
Ambani said Reliance Industries would start commercial production of gas in the January-March quarter of 2009 and the gas would be sold to whoever bids and gets it.
Krishna Godavari basin, off India's east coast holds huge potential of oil and gas and as also Mahanadi and in Cauvery. Of the total production that RIL is targeting, 80-85 per cent would be gas and 10-25 would be crude of high quality.
The company is also looking at making huge investments in rural transformation and renewable and alternate energy resources, Ambani said.
RIL at present is working on exploration and production of uranium, he added.
Asked about the group's retail business, Ambani said that this venture had benefited 6-8 lakh farmers.
Reliance Industries has 90 stake in the predominantly gas-rich Block KG-DWN-98/3 or D6. It pumped first oil from the block on September 19.
Oil flowed at the rate of 200 barrels per day and will rise to 10,000 to 15,000 barrels per day within weeks.
The firm has made 18 oil and gas discoveries in D6 and is at present developing Dhirubhai 1 and 3 gas finds at an additional investment of USD 5.2 billion.
RIL plans to drill two more wells on the field, which would raise the output to 34,000 barrels per day (1.7 million tonnes a year).
D6 will be the first area in deep-sea to produce crude oil since India opened up its oil hunt programme for private and foreign players in 1999 with the advent of New Exploration Licensing Policy (NELP).
Niko has 10 per cent stake in the 7,645 sq km KG-D6 block. The block was awarded to Reliance-Niko in India's first international bid round in 1999.
Making a major announcement on the company's oil and gas operations at a Editors' conference here, Ambani said the gas produced from its KG-D6 block would be offered at a base price of USD 4.2 per mmBtu (or about USD 26 a barrel oil equivalent).
However, there was no clarity on when and what condition the gas could be sold in view of the stay on RIL from selling gas from the block to any third party, pending disposal of a litigation between it and younger brother Anil Ambani's group company RNRL.
Asked if the company could sell the gas in the present condition and if Mukesh Ambani was willing to meet Anil in this connection, RIL spokesperson Paresh Chaudhry said the issue is sub-judice.
As per the available indication, any such meeting is unlikely.
Ambani said Reliance Industries would start commercial production of gas in the January-March quarter of 2009 and the gas would be sold to whoever bids and gets it.
Krishna Godavari basin, off India's east coast holds huge potential of oil and gas and as also Mahanadi and in Cauvery. Of the total production that RIL is targeting, 80-85 per cent would be gas and 10-25 would be crude of high quality.
The company is also looking at making huge investments in rural transformation and renewable and alternate energy resources, Ambani said.
RIL at present is working on exploration and production of uranium, he added.
Asked about the group's retail business, Ambani said that this venture had benefited 6-8 lakh farmers.
Reliance Industries has 90 stake in the predominantly gas-rich Block KG-DWN-98/3 or D6. It pumped first oil from the block on September 19.
Oil flowed at the rate of 200 barrels per day and will rise to 10,000 to 15,000 barrels per day within weeks.
The firm has made 18 oil and gas discoveries in D6 and is at present developing Dhirubhai 1 and 3 gas finds at an additional investment of USD 5.2 billion.
RIL plans to drill two more wells on the field, which would raise the output to 34,000 barrels per day (1.7 million tonnes a year).
D6 will be the first area in deep-sea to produce crude oil since India opened up its oil hunt programme for private and foreign players in 1999 with the advent of New Exploration Licensing Policy (NELP).
Niko has 10 per cent stake in the 7,645 sq km KG-D6 block. The block was awarded to Reliance-Niko in India's first international bid round in 1999.
Source: ET
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