Business Daily from THE HINDU group of publications
Wednesday, Jun 28, 2006
Business Daily from THE HINDU group of publications Wednesday, Jun 28, 2006 |
|
|
|
|
|
|
|
|
Home Page
-
Petroleum Corporate - Outlook RIL finds oil in KG basin Our Bureau
Striking black gold Aggressive exploratory drilling programme begins Working on expeditious monetisation of discoveries 1,386-km pipeline project on schedule, all approvals in place
Mumbai , June 27 Reliance Industries has struck crude oil in the Krishna-Godavari (KG) basin and says that there could be more finds. "More than size, this discovery signifies a large geological play that could result in future discoveries," said Mr Mukesh Ambani, Chairman. The new discovery was in the MA1 well in the deep water D6 block in the KG basin. It follows the discoveries in two wells in the KG-III-6 shallow water block earlier. "The full potential of these discoveries is under evaluation," said Mr Ambani, adding that the company has embarked upon an aggressive exploratory drilling programme that covers a third of India's prospective area. "As Reliance moves ahead, oil and gas exploration and production would undoubtedly be the highest value-creating business." The Directorate-General of Hydrocarbons has declared the six gas discoveries in the NEC25 block of the Mahanadi basin as commercial, he added. Reliance is working on the expeditious monetisation of the discoveries made in the KG and Mahanadi basins. This entails a project that will transport gas through a 48-inch, 1,386-km east coast-to-west coast pipeline, traversing Andhra Pradesh, Karnataka, Maharashtra, and Gujarat. Reliance is implementing this project through Reliance Gas Transportation Infrastructure Ltd (RGTIL) in a contract and common carrier framework. As gas transportation is a regulated business, RIL will exert control on pipeline management while not having the obligation to invest in the equity of RGTIL. The project is on schedule, with all necessary Government approvals in place, major contracts awarded and delivery to consumers envisaged to take place by the second half of 2008-09, according to Mr Ambani. Reliance's coal-bed methane project, as well as production from the Panna-Mukta Tapti fields, is in progress, he added. On the international front, Reliance is building a portfolio of exploration acreages accrued through organic growth and strategic acquisitions and is seeking more exploration and production opportunities, he said. The international portfolio so far consists of production in Yemen at 2,000 barrels per day, peaking to 20,000 barrels in 2007; exploration in Oman; seismic survey in the Pacific Ocean, off the coast of Colombia; and interest in an exploration block in East Timor.
Related Stories: More Stories on : Petroleum | Outlook | Reliance Industries Ltd
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|
