Shares of Reliance Industries Ltd declined more than 3 per cent today after its Canada-based partner Niko Resources said that the firm’s flagging KG-D6 gas block holds 80 per cent less reserves than previously estimated.

After a weak opening, shares of the company further lost 3.49 per cent to touch a low of Rs 711.85 on the BSE.

Similarly, on the NSE the heavyweight stock dropped 3.49 per cent to Rs 711.60.

The stock was the worst performer among the BSE 30-scrip index Sensex.

Decline in the stock pushed the BSE Sensex 52.80 points down to 16,843.83 at 12.57 p.m.

Proved plus probable reserves at Krishna Godavari basin D6 block has decreased to 1.93 trillion cubic feet from about 9.65 Tcf previous estimate, Niko said in a statement.

Niko holds 10 per cent stake in KG—DWN—98/3 or KG—D6 block where RIL is the operator with 60 per cent interest. The remaining 30 per cent is held by BP plc of UK.

In its ‘Reserves and Contingent Resources Update’, the Canadian oil and gas producer said total proved plus probable natural gas reserves in its various blocks have fallen almost 51 per cent to 377 billion cubic feet equivalent (bcfe) mainly due to lower reserves in KG-D6.

(This article was published on June 21, 2012)
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