Reliance Industries Ltd. (500325.BY) will raise natural gas output from a
new well in India's richest gas deposit from this month, which could
help it to reverse months of declining output.
The company is expecting to add between 1.5-2 million metric
standard cubic metres a day (MMSCMD) by this month from its current
output level of around 12 MMSCMD. The additional output will come from
the well located in MA field in the east coast Krishna-Godavri D 6
block, a company spokesman told The Wall Street Journal on Friday.
Production in the east coast KG D-6 block has declined from around 61 MMSCMD in 2010, he said.
Reliance says the decline in natural gas output from the east
coast block is due to geological complexities. Any additional natural
gas output would be welcomed by India, which imports nearly 75% of its
energy needs to feed its growing economy.
The company along with its partner BP PLC plans to invest $8
billion to $10 billion to quadraple their natural gas output in India by
2020.
Seeking technology for deep drilling, Reliance had sold a 30%
stake in 21 oil and gas blocks across the country to BP PLC for $7.2
billion in 2011.