Financial Daily from THE HINDU group of publications
Friday, Nov 01, 2002
Corporate - Announcements
Industry & Economy - Petroleum
`100% success rate in Godavari gas wells'
MUMBAI, Oct. 31
RELIANCE Industries Ltd (RIL) today officially announced that it has discovered in excess of seven trillion cubic feet of natural gas in the deep-water block D6 in the Krishna Godavari basin off Andhra Pradesh coast.
Making the announcement at RIL's 28th annual general meeting (AGM) here today, Mr Mukesh Ambani, Chairman and Managing Director, RIL, said, "This is the first-ever discovery by an Indian private sector company and in the five exploration wells drilled so far in the block, Reliance has achieved a 100 per cent success rate."
According to Mr Ambani, the in-place volume of natural gas is in excess of 7 trillion cubic feet, equivalent to about 1.2 billion barrels or 185 million tonnes of crude oil. "Based on the recoverable reserves of over 5 trillion cubic feet, the gas availability to consumers in the country would increase by almost 60 per cent," he said.
Reliance will continue to explore this block and expects to see further upside. Mr Ambani added that RIL would deliver about 40 million standard cubic metres of gas per day to consumers in India in three to four years, after obtaining requisite Government approvals for development.
"It would signal a giant step in ensuring energy security for India, as the production would account for almost four per cent of India's energy needs," Mr Ambani said, adding that in memory of Dhirubhai, the discovered gas fields will be named as Dhirubhai 1, 2 and 3.
Speaking further about RIL's exploration initiatives, "Today Reliance is the largest private sector exploration and production company in India, with over 1,77,000 sq km of exploration acreage in 23 offshore and onshore blocks.
This is likely to go up further 1,00,000 sq km with successes expected in the third round of bidding under the New Exploration and Licensing Policy .
With just under 2,000 sq km of the total acreage explored so far, Reliance envisages a significant potential in upstream oil and gas business."
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