RIL contribution to oil and gas industry

Gas output to rise 98%, oil 29-33% by 2012-13: report

In spite of a poor response to Nelp VIII and CBM IV auctions, the country’s exploration and production (E&P) is set to scale greater heights. The country is under explored, with only 22% of its exploration acreage being moderate-to-well explored and a significant part of the unexplored acreage is highly prospective. Reliance Industries (RIL) is set to emerge as the largest gas producer and CIL, as a major oil producer when their production ramps up. Both have started production from their discoveries in 2009.

According to a Merril Lynch report, ‘Indian E&P -on the cusp of next exciting phase’, production from discoveries made by RIL, Oil & Natural Gas Corporation (ONGC) and Cairn India (CIL) will start in 3-4 years and boost the output of gas by 25-30 billion cubic meter (bcm) from the 2010-11 levels. Besides, when RIL’s K-G D6 gas output ramps up, the country’s gas output is expected to jump by 98% and when CIL’s oil output ramps up in 2011-12 and 2012-13, the country’s oil output will rise by 29-33%.

RIL is expected to produce 36-46 million metric standard cubic meter per day (mmscmd) from the 9 satellite fields in the K-G D6 block and 6 discoveries in the NEC-25 block. ONGC is expected to produce 25 mmscmd of gas and 20,000 barrel per day of oil from its discoveries in the KG-DWN-98/2 block and the adjoining nomination blocks in 2012-13. Also, Gujarat State Petroleum Corporation Limited (GSPC) is expected to start the production of gas from its discoveries in the shallow water K-G basin block KG-OSN-2001/3 in 3-4 years. The peak output rate is estimated at 6-9 mmscmd.

The report also states that 106 discoveries have been made in 31 Nelp (new exploration licening policy) and pre-Nelp blocks since 1999-2000, including two-world class discoveries in K-G D6 and RJ-ON-90/1 by RIL and CIL, respectively. There is a significant scope for reserve accretion in each of these blocks.

Source: www.financialexpress.com

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