New Delhi: Reliance Industries may not touch peak output of 80 million standard cubic metre a day (mmscmd) of gas from its east coast deep water block by April 2012, from about 53 mmscmd now, the country’s upstream regulator said on Monday.
S.K. Srivastava had asked Reliance, India’s top-listed firm and owner of the world’s biggest refining complex, to drill more wells to raise gas output to 61.88 mmscmd by 1 April, and to 80 mmscmd by 1 April, 2012.
Concerns over Reliance’s gas production have for months dampened the growth outlook for the Indian energy giant, despite the company posting its highest-ever quarterly profit in January as refining margins surged.
The company has told the upstream regulator in a letter that output from the key D1 and D3 fields in its main producing KG-D6 block of the Krishna-Godavari basin may fall to 38 mmscmd during 2012-13 from 42-43 mmscmd now, a source with knowledge of the letter said this month.
The letter had said output from MA1 block, another field in the D6, will remain steady at 9 mmscmd in 2012/13. It said Reliance proposes to drill five new wells in 2012/13, but these “shall not be contributing to production until mid-2014”.
Last month, Reliance agreed to sell a stake in 23 oil and gas blocks in the KG basin to BP in a $7.2 billion deal, in part to benefit from BP’s deepwater exploration expertise.
Shares in Reliance, the heaviest-weighted stock on India’s main Sensex index , closed 0.3% lower on Monday in a Mumbai market that rose 0.7%.