Mumbai, June 27: Reliance Industries Ltd (RIL) has once again struck gold in the Krishna Godavari (KG) basin. Mukesh Ambani today revealed that the company recently made crude oil discoveries in deep water and shallow blocks in the basin.
While a discovery was made in the MA1 well within a deep water D6 block in this KG basin, it has also found crude oil in two other wells in the KG-III-6 shallow water block.
“Testing has been done in two zones located three kilometres below sea level and more than the size, this discovery signifies a large geological play that could result in future discoveries,” Ambani said while commenting on the discovery made in the MA1 well.
Briefing shareholders on RIL’s exploration and production (E&P) business, Ambani told shareholders that Reliance is working on the expeditious monetisation of the world-scale gas discoveries made in 2002 in the D6 block in the KG basin. Later replying to queries from shareholders, the RIL chief said delivery to consumers of this gas would commence from the second half of 2008-09. This delivery time target represents less than six years from the time of announcement of the discovery and it ranks the fastest turnarounds for deep water gas development projects in the world.
RIL is also looking to transport gas through a 1,400-kilometre east coast to west coast pipeline, traversing the states of Andhra Pradesh, Karnataka, Maharashtra and Gujarat. The pipeline project is being implemented through Reliance Gas Transportation Infrastructure Ltd. Though RIL will have the control on pipeline management, it will not have the obligation to invest in the equity of the company, he added.
Even as the company is enthusiastic about the prospects of the KG block, it is investing in overseas territories too. According to Ambani on the international front, Reliance is building a portfolio of exploration acreages in known “petroliferous” regions in the world. Its portfolio so far consists of production in Yemen, which is now at 2,000 barrels per day. This is slated to peak to 20,000 barrels per day in 2007. It has also an exploration project in Oman, a seismic survey in Pacific Ocean, and an exploration block in hydrocarbon rich East Timor.
The group is also beefing up its polyester operations. “It is often said that staying on top is a greater challenge than getting to the top. This is so true of the polyester business. In recognition of this reality, Reliance is bringing about a fundamental transformation in its polyester business,' Ambani said. The plan here is to not only focus on manufacturing but also create a differentiated product portfolio.
In fibre intermediates, RIL is now commissioning a 7.30- lakh-tonne-per-year purified terephthalic acid plant at Hazira and the unit will be in commercial production in the next few weeks.
