New Delhi/Singapore: Reliance Industries Ltd (RIL) is unable to hit peak gas production at its D6 block off India’s east coast due to customers not buying allocated volumes and a lack of pipeline infrastructure, a top company official said.
The company is producing 63-64 million standard cubic metres a day (mscmd) of gas from the block in the vast Krishna-Godavari (KG) basin, executive director P.M.S. Prasad said. Gas output was slated to reach a peak of 80 mscmd by April.
The government decides who buys the gas from the block, and at what price.
“Our infrastructure is ready to produce 80 mscmd. There is no timeline...customers need to take full (allocated) volumes and pipelines have to be laid,” he said.
Production barrier: Reliance Industries has to drill one of two more wells to hit peak oil output of 40,000 barrels per day.
The company is producing 21,000 barrels per day (bpd) of oil from the D6 block, he said.
RIL has to drill one of two more wells to hit peak oil output of 40,000 bpd, Prasad said.
In an unrelated development, RIL on Tuesday sold its first diesel cargo in Singapore’s benchmark over-the-counter physical market since its second Jamnagar facility was completed, traders said.
The company sold 180,000 barrels of ultra-low sulfur diesel to Europe’s biggest oil company BP Plc at 90 cents a barrel over benchmark quotes for April, traders said.
RIL operates two refineries in Jamnagar in Gujarat. The second unit, which opened in December 2008, is able to process 580,000 bpd of crude oil, according to data compiled by ‘Bloomberg’. The first plant has a capacity of 660,000 bpd.
The company has been operating in Singapore under its Reliance Global Energy Services Singapore Pte Ltd unit since August. A Singapore-based Reliance official declined to comment on the transaction.