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Reliance finds more gas in Krishna-Godavari basin
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Reliance Industries on Tuesday said it has made a third successive gas discovery in the D3 deep-sea block in the Krishna-Godavari basin, off the east coast.
Reliance found three gas reservoirs in the KGV-D3-R1 well drilled on the block KG-DWN-2003/1 (or D3), a company statement said here.
The block, located about 45 kilometres off the coast in the Bay of Bengal, is in the vicinity of its prolific D6 block where three of the 19 oil and gas finds have already been put on production.
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RIL Wants Price Clarity to Develop New Gas Areas
Reliance Industries Ltd., fighting a lawsuit over the supply of natural gas from a field off India’s east coast, will wait for pricing benchmarks to be set before developing findings off the nation’s east coast.
We want to see what the government wants to do, P.M.S. Prasad, president for the oil and gas business, said in an interview with Bloomberg-UTV. If the government thinks the price should be $2 and if somebody is arguing that the gas should be monopolized by somebody, then it’s not worth it.
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KG D-6 gas output may be over 4 times the estimate
The D-6 fields of Reliance Industries in the Krishna-Godavari (KG) Basin have the potential to produce gas that is over four times the estimated peak output of 80 million cubic metres a day (mmscmd).
VK Sibal, director general, directorate-general of hydrocarbons, told Business Standard, The 50 wells in D-6 were earlier estimated to produce a total of 80 mmscmd gas (at the rate of 1.6 mmscmd per well). However, each well can produce about 6 to 7 mmscmd, so you can estimate the potential. Sibal said that the government was usually conservative in approving the proven reserves as the exact potential could be ascertained only after actual production starts.
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KG-D6 may bring 840 Billion Rupee Revenue for India
India expects revenue of 840 billion rupees (17.3 billion dollar) from the KG-D6 gas field operated by Reliance Industries Ltd. off the nation’s east coast, the federal government said in a statement in New Delhi today.
‘An allegation has been made that in the contract of the KG-D6 project, the government would get only 5 billion rupees as against the contractor’s stake of 500 billion rupees,’ according to the statement. ‘This allegation is incorrect. The recovery of the government will be increased toward the latter part of the project.’
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5 more plants seek natural gas from KG D6 plant
Amid the ongoing controversy over the gas dispute between the Ambani brothers and the Union Government, five more power plants — two each from Delhi and Andhra Pradesh and one from Gujarat —have sought allocation of 4.73 million standard cubic metres a day (mscmd) of gas from the KG basin D6 gas field.
However, these plants will have to wait for a formal approval from the Government under the gas utilisation policy and Reliance Industries Ltd. (RIL) cannot sell gas directly to them.
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Reliance Power asks for CAG report on KG D6 capital expenditure
Anil Ambani-led Reliance Power on Wednesday asked the Central Government to release the report of the Comptroller and Auditor General (CAG) of India on the audit of Reliance Industries(RIL) KG D6 capital expenditure (Capex).
In the interest of transparency, and to set the matter at rest, the Directorate General of Hydrocarbons (DGH) should publicly disclose the full reports of CAG and other auditors, referred to in the statement, including the identity of auditors and the terms of reference, said Reliance Power Chief Executive Officer J. P. Chalsani while addressing a press conference here.
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Reliance Industries : Company Review by Live Mint
Monetisation of the KG-D6 is likely to generate incremental free cash flow of 1 billion dollar by FY11E.
More importantly, we believe that it sets the stage for exploratory upside arising from the other blocks currently held by RIL.
Our analysis of the company’s E and P portfolio implies a resource base of 20 billion boe, translating to 4.1/boe dollar based on our SOTP of 31.6 billion dollar for the E and P business. Litigation with RNRL and NTPC would be an overhang on the stock in the short-term.
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Andhra wants a share of the Krishna-Godavari gas
Just after Tata Power, GVK, GMR and Torrent had sought government intervention to ensure that the Ambani v/s Ambani spat does not hinder KG basin gas supplies to them, the Andhra Pradesh chief minister wants his state to get its due share of the hydro-carbon assets located off the coast of Andhra Pradesh.
Andhra Pradesh chief minister Y S Rajasekhara Reddy told members of 13th finance commission that people of his state are entitled to a part of the Krishna-Godavari gas since the natural resource is located just off the coast of Godavari district.
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Family agreements cannot override national priorities:the fertiliser ministry
In a new twist to the gas dispute between Ambani brothers, the fertiliser ministry today said private family agreements could not override national priorities. Urea plants had been given the first priority in sale of natural gas from Reliance Industries‘ D6 but the Bombay High Court had upheld the Ambani family, giving 70 per cent of the initial volumes from the fields to Anil Ambani Group’s RNRL.
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Reliance Industries signs gas sale agreement with Essar Steel, Ispat
Reliance Industries today signed gas sale agreements with steel makers including Essar Steel and Ispat Industries for supplying 3.75 mmcmd of natural gas from its offshore Krishna Godavari-D6 basin.
The agreement, which will be reviewed at the end of five years, will boost profitability of the steel firms who had been buying expensive LNG or naphtha to meet feedstock shortage at their plants, a senior official said.
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