RIL, BP need four years to raise KG-D6 output: report
23 September 2011
Billionaire Mukesh Ambani's Reliance Industries Ltd (RIL) and BP Plc (BP) may need three to four years to raise output at India's biggest gas field as the reservoir was harder to tap than previously estimated, according to a report
A Bloomberg report quoting unnamed sources with direct knowledge of the matter said Reliance, which sold a 30 per cent stake in the fields to BP, had sought the Indian government's permission for development of smaller areas to counter a drop from its main KG-D6 block off the east coast.
The company was also in the process of studying acquisition of shale-gas assets in Canada, according to the person.
Profit at Reliance had fallen short of analysts' forecasts for six of the last seven quarters and its shares had slumped 27 per cent this year as production of the clean-burning fuel fell.
The report said tests showed an increase in production might not be viable at government-controlled prices.
Shares of RIL fell 2 per cent to Rs770.60, following yesterday's 6.1 per cent drop, the biggest two-day decline since 3 November 2009. The benchmark Sensitive Index lost 0.3 per cent.