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Mukesh Ambani-run RIL sues government to recover KG Basin gas field costs

November 29, 2011 · Filed Under Reliance Industries · Comment 

Mukesh Ambani-run Reliance Industries Ltd (RIL) has launched arbitration proceedings against the government over the recovery of cost for the development of the offshore KG Basin gas field.

The cost estimates had run into a controversy following the Comptroller and Auditor General of India’s (CAG) report pointing out irregularities on the part of the company.
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Reliance Industries will have to pay royalty on KG basin natural gas: Govt

July 2, 2009 · Filed Under Reliance Industries · Comment 

The government today said Reliance Industries will have to pay royalty on natural gas it is producing from KG basin fields as per the Production Sharing Contract (PSC) signed with it.

Minister of State for Petroleum and Natural Gas Jitin Prasada in a written reply to a question in Lok Sabha cited PSC as the governing law for deciding on royalty and government’s share in the oil and gas produced from D6 block.
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Reliance Industries signs gas sale agreement with Essar Steel, Ispat

June 22, 2009 · Filed Under Reliance Industries · Comment 

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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Government asks Reliance Industries to sell natural gas to Essar and Ispat

June 18, 2009 · Filed Under Reliance Industries · Comment 

PTI reported that the government has asked Reliance Industries Limited to sell natural gas from its eastern offshore Krishna Godavari fields to steel firms like Essar and Ispat to help the country’s most prolific gas fields produce at an optimum level.

Top official said the ministry of Petroleum and Natural Gas issued orders directing Reliance to sell 3.75 metric million standard cubic meters per day of gas to Essar Steel, Ispat Steel and Vikram Ispat.
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Essar, Ispat, Vikram Steel to get Reliance natural gas from KG-D6

June 16, 2009 · Filed Under Reliance Industries · Comment 

The government has directed Mukesh Ambani controlled Reliance Industries (RIL) to supply compressed natural gas to steel companies such as Essar, Ispat and Vikram Steel from its gas fields in the Krishna-Godavari D6 basin.

The petroleum and natural gas ministry issued the orders on Monday asking Reliance to sell a total of 3.75 million standard cubic metres of gas per day (mmcmd) to Essar Steel, Ispat Steel and Vikram Ispat. There is no mention of the rate at which the supply has to be made.
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Petroleum Consultant confirms presence of oil, gas in Reliance K-G blocks

May 28, 2009 · Filed Under Reliance Industries · Comment 

Petroleum consultant Gaffney, Cline Associates Ltd has confirmed the presence of oil and gas in two offshore blocks in the Krishna-Godavari basin — D3 and D9.

These two blocks lie on either side of the D6 block, from where Reliance has just begun producing gas. Reliance has a 90 per cent interest in D3 and D9, the other 10 per cent is with Hardy Oil and Gas Plc of the UK, a company majority-owned by NRIs.

GCA was hired by Hardy Oil to assess D3 and D9, and the report of the consultants was issued on Wednesday.

Calling Krishna-Godavari basin “an emerging world class petroleum province,” the report has come up with a matrix of resources in best, worst and most probable scenarios.
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RIL strikes two more natural gas reserves in Krishna Godavari basin

May 27, 2009 · Filed Under Reliance Industries · Comment 

After D6 in Krishna Godavari basin, Reliance Industries has struck big in two nearby blocks with estimates putting in place natural gas reserves at 20 trillion cubic feet.

D-3 and D-9 blocks in the same KG basin may hold 9.5 Tcf and 10.8 Tcf of gas reserves respectively, UK-based Hary Oil and Gas Plc said in a statement.

Hardy, which cited estimates by independent consultant Gaffney, Cline and Associates, has 10 per cent stake each in the two blocks where Reliance is the operator with 90 per cent interest.

D6, which may hold upto 50 Tcf of gas reserves, began producing last month and is slated to double India’s natural gas production by year end when it reaches 80 million cubic meters per day.
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NTPC disinclination to buy RIL’s natural gas angers Petroleum Ministry

May 15, 2009 · Filed Under Reliance Industries · Comment 

NTPC Ltd’s reluctance to buy natural gas from Reliance Industries has angered the Petroleum Ministry, which wants to reallocate the gas earmarked for the public sector firm among other fuel-deficit power producers.

The Ministry on May 12 wrote to the Power Ministry that NTPC had been allocated 2.67 million cubic metres of gas per day from RIL’s KG-D6 fields at the instance of the state-run firm, which said that it needed the fuel desperately to meet the deficit at its plants.

But, NTPC has not come forward to sign the Gas Sales and Purchase Agreement (GPSA) and has not even communicated its intent to do so in future despite RIL sending it the draft agreement, a senior Government official said.
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Ratnagiri Gas & Power may shortlist terminal lease bidders by July

May 12, 2009 · Filed Under Reliance Industries · Comment 

Ratnagiri Gas & Power Pvt., the operator of India’s biggest gas-fired power plant, may shortlist customers to lease its 1 million tonne-a-year liquefied natural gas import terminal by July, managing director, AK Ahuja said.

The company will choose “one or more than one” of the six initial bids sent by companies, including Reliance Industries Ltd, India’s biggest by value, and state-run Indian Oil Corp., Ahuja said by telephone from New Delhi.

Ratnagiri won’t need to use the entire terminal because it is entitled to get gas from Reliance’s field off the east coast on priority. The surplus capacity can be used by others that aren’t on the government’s list of key gas customers and need to import the fuel to overcome a domestic shortfall.
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NTPC againsts RIL’s KG-D6 Joint Venture to Dabhol power plant

May 8, 2009 · Filed Under Reliance Industries · 1 Comment 

The National Thermal Power Corporation (NTPC), which has sought to buy natural gas from Reliance Industries‘ KG-D6 fields in the eastern offshore for itself, has now come out strongly against sale of the gas to its joint venture Dabhol power plant.

State-run NTPC, which had earlier been denied access to KG-D6 gas due to RIL’s ongoing court battle with Anil Ambani group firm Reliance Power, is now using RIL’s plea to oppose sale of KG-D6 gas to Ratnagiri Gas and Power Pvt Ltd.

The board of the Dabhol power company is now split over sourcing gas for the mega power plant, part of which will come from imports.
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