RIL to spend over $12bn to develop three gas basins
RIL will invest over $12 bn to develop gas finds in the Krishna Godavari basin, Mahanadi and the North East Coast.
By Piyush Pandey, TNN |
MUMBAI: RIL will invest over $12 billion to develop its gas finds in the Krishna Godavari (KG) basin, Mahanadi and the North East Coast. Of this, about $8.8 billion has been earmarked for its biggest find in the KG basin that will yield 80 million metric standard cubic meters per day (mmscmd) of gas.
An additional $3 billion will be used to develop the gas fields in the Mahanadi and NEC basins over the next four years. The company has submitted the development plan to the upstream regulator, the Directorate General of Hydrocarbons (DGH) for approval, sources close to developments said.
Over 98% of RIL’s revenues currently come from refining and petrochemicals, with oil and gas production accounting for only about 2%. This ratio is likely to change substantially over the next few years, when commercial production from KG begins.
In the Mahanadi basin, RIL has drilled eight wells which have resulted in seven commercial discoveries. The company plans to connect the landfall points of its two discoveries in KG and Mahanadi by a pipeline from Kakinada in Andhra Pradesh to Basudebpur in Orissa. Part of the gas will subsequently be transported to Howrah in West Bengal. RIL’s gas reserves in the Mahanadi and NEC basins are currently about 8.3 trillion cubic feet. The initial development plan for production of one tcf of gas from the Mahanadi basin may be scaled up further.
RIL’s official spokesperson declined to comment on this issue, and a mail sent to the company remained unanswered till the time of going to press.
An additional $3 billion will be used to develop the gas fields in the Mahanadi and NEC basins over the next four years. The company has submitted the development plan to the upstream regulator, the Directorate General of Hydrocarbons (DGH) for approval, sources close to developments said.
Over 98% of RIL’s revenues currently come from refining and petrochemicals, with oil and gas production accounting for only about 2%. This ratio is likely to change substantially over the next few years, when commercial production from KG begins.
In the Mahanadi basin, RIL has drilled eight wells which have resulted in seven commercial discoveries. The company plans to connect the landfall points of its two discoveries in KG and Mahanadi by a pipeline from Kakinada in Andhra Pradesh to Basudebpur in Orissa. Part of the gas will subsequently be transported to Howrah in West Bengal. RIL’s gas reserves in the Mahanadi and NEC basins are currently about 8.3 trillion cubic feet. The initial development plan for production of one tcf of gas from the Mahanadi basin may be scaled up further.
RIL’s official spokesperson declined to comment on this issue, and a mail sent to the company remained unanswered till the time of going to press.
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