Reliance Industries Makes Huge Gas Discovery

Reliance Industries has made a very large gas discovery in Andhra Pradesh's Godavari basin. Exploration block KGB-6 in Krishna Godavari basin, 150 kilometers offshore Andhra Pradesh coast is estimated to hold approximately 40 to 50 million cubic meters per day. By comparison, ONGC's entire gas production at present is approximately 55 million cubic meters per day. This means that the country's gas production will shortly double.

Reliance has already informed the director general, hydrocarbons, and the ministry of petroleum about this huge discovery. A formal announcement by Reliance is expected shortly. Reliance officials have declined to comment on the discovery. Development of this huge discovery is expected to cost more than Rs 7,000 crore. Reliance has already spent Rs 300 crore on the block.

Reliance holds interest in 23-exploration blocks in a consortium with other exploration and production companies. These exploration areas cover a wide range of geological settings, spanning onshore, shallow and deepwater blocks on the country's east and west coasts. Reliance is the operator in 14 of these blocks. The company's total oil and gas exploration acreage exceeds 1,30,000 square kilometers. The company plans to spend approximately Rs 1,500 crore in the first phase of its three-year offshore oil and gas exploration program. The government has awarded four exploration blocks to a consortium of Reliance Industries with Hardy Exploration & Production (India) under NELP-III.