Gas output from RIL's D6 block to spurt in April
09 Mar 2011
Gas production from the Reliance Industries operated D6 block in the Krishna-Godavari Basin, off India's east coast, is likely to go up after a sharp dip in the past few months.
Reliance Industries Ltd is expected to increase production of natural gas from April at the D6 block, the Directorate General of Hydrocarbons told reporters in New Delhi today. The announcement that put the increased production at 12 million units and an increase in revenue of Rs2,400 crore, boosted RIL shares.
"As per their [Reliance Industries'] plan submitted to us, the gas output from KG-D6 may rise to 67 million metric standard cubic meters a day in April," S K Srivastava, director general of the upstream regulator, said.
The higher output would be on account of four new wells that RIL is scheduled to complete by April. This will take RIL's gas producing wells to 22 against 18 now.
Srivastava said Reliance Industries is currently producing 53 mmscmd of gas from the deep-water D6 block in the Krishna-Godavari basin, India's richest gas find so far.
An increase in gas production at D6 will be good news for investors of Reliance Industries as the block is a significant contributor to its revenue and India's gas production. The company has so far lagged in its production target for D6.
Reliance Industries, controlled by Mukesh Ambani, produced 60 mmscmd of gas at D6 during April-June 2010. Production fell to 58 mmscmd during July-September, but the company didn't give any reason for the decline. It also didn't disclose the output figure for the October-December quarter, but analysts pegged it at 54-55 mmscmd.
