Mumbai: India’s exploration regulator has approved an oil and gas development plan of top private explorer Reliance Industries Ltd at a field in its D6 block off India’s east coast, the company said in a statement.
The MA field is estimated to produce 40,000 barrels of oil per day and 240 to 350 million cubic feet of gas per day from second half of 2008, Reliance said in the statement that was issued late on 24 April.
The company, which is developing two other gas fields in the same block in the Krishna Godavari basin, is expected to produce up to 80 million cubic metres of gas per day later this year.
Reliance Industries’ chief financial officer Alok Agarwal said on Monday that gas sales would account for a significant portion of the company’s cash flow and earnings in later quarters.
Earlier this month two company sources said Reliance Industries was in talks with several oil majors to sell a stake of up to 10 percent stake in the D6 block.
Reliance Industries owns 90% of the block, with the rest owned by Canada’s Niko Resources Ltd.