RIL set to start gas and oil production from KG-D6 block in the next quarter

Mukesh Ambani Mumbai: Reliance Industries will begin oil and gas production from its eastern offshore D6 block in the third quarter (July-September) of the current year, Niko Resources, its junior partner, said in a regulatory filing.

''Oil and natural gas production is expected to commence in the third calendar quarter of 2008," the Canadian company said in its filing.

Niko holds a 10 per cent stake in the D6 gas and oil block.

Reliance will commence production at the Dhirubhai-1 and 3 gas fields and the MA oil fields in the Krishna-Godavari basin in the KG-DWN-98/3 (D6) block.

Reliance is investing around $5.2 billion to bring production from the gas and oil fields, which are among the 18 such finds in the KG basin.

Reliance and Niko will invest $1.5 billion for oilfield development and nearly $3.6 billion in the second phase of gas development, Nicco said.