The Hindu Business Line : RIL to invest $5.2 b for doubling KG basin output

Armed with the Directorate-General of Hydrocarbons' (DGH) approval for the addendum to its initial development plan for its deepwater block in KG basin, Reliance Industries Ltd is looking at doubling output from the gas field at an enhanced investment of $5.2 billon.

In a statement issued on Wednesday, the company said, ``The DGH has approved addendum to the initial development plan for the deepwater Block KG-D6. As per the approved addendum the capital expenditure for initial phase of development to produce 80 million standard cubic metre (mmscmd) of gas is $5.2 billion."

Earlier proposal

As per the initial proposal, the company was planning to invest $2.47 billion to produce 40 mmscmd of gas. However, with rig prices going up and more reserves being found in the block, the company raised the proposed expenditure and the planned output, RIL said. The development plan envisages commencement of delivery of first gas by second half of 2008-09.

Reliance plans to invest $5.2 billion in phase-I of the development involving drilling of 22 wells. With the phase-II commitment of 28 additional wells, the total project cost is estimated to be $8.84 billion. The deepwater block KG - D6 in Krishna Godavari Basin off the East Coast in Bay of Bengal was awarded to RIL and NIKO Resources Ltd, Calgary, Canada (NIKO) under NELP - 1 bidding round. RIL, as operator of the block holds 90 per cent of the participating interest and NIKO the remaining 10 per cent.

The block covers an area of 7,645 sq km and its north western boundary is about 40-60 km southeast of Kakinada in Andhra Pradesh. Water depth in the block ranges up to 2,700 m. RIL made the world's largest gas discovery in 2002 in this block.

More Stories on : Petroleum | New Projects | Reliance Industries Ltd

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Japan keen to take part in rail freight corridor project

Japan's ageing population and India's opportunity

Bharti teams up with AXA for life insurance foray

DoT seeks Cabinet nod to amend Press Note 5

Private equity investments soar: PwC

Bad scheduling of fertiliser imports costs PSUs Rs 160 cr in demurrage

RIL to invest $5.2 b for doubling KG basin output

Apt time to lift ban on sugar exports: Pawar

Century Mills set to down shutters in Mumbai

Sensex up 186 on back of strong fund buying

Momentum indicators signal a medium-term downtrend

ICICI Bank hikes lending, deposit rates