Reliance Industries Gets OK for $2.49B Project

MUMBAI, Apr 07, 2005 (Dow Jones Commodities News Select via Comtex)

India's Reliance Industries Ltd. (500325.BY) has received the government's approval for a $2.49 billion plan to develop a gas discovery in the Krishna Godavari basin, reported the Press Trust of India Thursday.

Vinod K. Sibal, director general at Directorate General of Hydrocarbons, said Reliance will produce 40 million standard cubic meters per day of gas from the site off the country's east coast by early 2008, the report said.

"The development plan has been approved based on our estimation of five to six trillion cubic feet of proven gas reserves," Sibal said, adding the total reserves in the block known as D6 may exceed 14 trillion cubic feet, according to the report.

Reliance has discovered gas in nine of the twelve wells it has drilled so far in the D6 block, and has declared three of them commercial. In addition to exploration, Reliance, India's largest private company, also has interests in petrochemicals, refining and telecommunications. (C) 2005 FWN Select. All Rights Reserved