Evaluator halves RIL's D9 block potential
16 April 2010
According to a CNBC-TV18 report, an independent evaluator has downgraded the size of the prospective gas resources in Reliance Industries (RIL) D9 block in the Krishna Godavari basin off the coast of Andhra Pradesh.
As against the earlier estimate of 10.6 trillion cubic feet of gas, D9 one of the four promising blocks of the company is likely to hold only about 5.4 trillion according to Reliance's partner in the field, Hardy Oil & Gas Plc, the report said.
With the revenues its eastern offshore KG-D6 gas field has been generating the Mukesh Ambani-led firm has been seeking acquisitions in the US. Also its twin refineries at Jamnagar in Gujarat are looking to directly sell fuel into the US.
Its subsidiary Reliance Marcellus LLC (a subsidiary of RIL) last week tied-up with US-based Atlas Energy Inc to acquire a 40-per cent interest in Atlas' core Marcellus Shale acreage position.
The Indian firm would pay $339 million in cash to close the deal and foot Atlas' drilling cost of up to $1.36 billion.
In a statement the company said the acreage would support the drilling of over 3,000 wells having a net resource potential of about 13.3 trillion cubic feet gas equivalent. The deal is expected to be concluded by the month end according to the statement.