Reliance Industries KG basin gas output seen up in April
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Reliance Industries is likely to raise gas output from its Krishna-Godavari basin to 67 million metric standard cubic metres a day (mmscmd) by April, after four more wells start production, the upstream regulator said.
Current gas output from Reliance's D6 block in the Krishna-Godavari basin stands at 53 mmscmd, S.K. Srivastava told reporters on Wednesday.
The news lifted shares in India's largest-listed company by as much as 2 per cent. By 0705 GMT, the stock, valued by the market at $71.7 billion, was up 1.3 per cent at 997 rupees.
In January, the Indian energy giant posted its highest-ever quarterly profit as refining margins surged, but concerns over the group's gas production have put a dampener on the outlook for the company for several months.
Reliance is pumping less than the 60 mmscmd it pumped last year, although the country's upstream regulator had said earlier output could rise by April, and far lower than its peak capacity of 80 mmscmd.
"As per their plan submitted to us, their output from D1 and D3 fields will be 59 mmscmd and (another) 8 mmscmd from MA1 field in April," Srivastva said.
"Reliance's field development plan says they will bring online four more wells," he said, adding of these, two were drilled and are waiting to be connected.
In February, BP acquired stake in 23 blocks from Reliance Industries, in a $7.2 billion deal, making it one of the biggest foreign direct investments in India.
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