RIL rallies over 5% on approval of $3.18-bn plan in KG-D6 block

NEW DELHI: Reliance Industries Ltd rallied over 5 per cent on Thursday, after the oil & gas major and its partner BP Plc won approval to invest $3.18 billion in R-Series gas field in the flagging KG-D6 block.

RIL-BP plan to quickly bring satellite fields in the KG-D6 block to production to help reverse the decline in output, PTI said in a report.

Reliance Industries finally closed 4.2 per cent higher at Rs 845.35. The stock touched a high of Rs 852.80 and a low of Rs 813.10 in trade today.

RIL, the operator of KG-D6 block with 60 per cent interest, had on January 30 submitted the Field Development Plan ( FDP) for D-34 field to DGH.

The block oversight committee, called Management Committee (MC), headed by upstream regulator DGH, approved plans of RILBSE 4.22 per cent and its partners BP plc of UK and Niko Resources to produce 13-15 million standard cubic meters per day of gas for 13 years from D-34 discovery in the KG-DWN-98/3 or KG-D6 block, sources privy to the development said.

“The planned output from D-34, which is estimated to hold an in-place reserve of 2.2 Trillion cubic feet, is equivalent to the combined current production from Dhirubhai-1 and 3 (D1&D3) gas field and MA field in the KG-D6 block,” added the PTI report.