Mumbai, Sep 22: On Sunday, Sep 21 Mukesh Ambani, the Reliance Industries(RIL) announced in Mumbai that the company has created history by flowing oil from the nation's first deep-sea oilfield. However the gas production from the eastern offshore Krishna Godavari basin will begin in January 2009, four months behind schedule.
"Reliance began oil production from its predominantly gas-rich D6 block on Sep 17, with initial oil flowing at the rate of 5,500 barrels per day," said Mukhesh Ambani. The crude oil production will reach 20,000 barrels per day in a month's time, and the peak output of 40,000 barrels of oil will be achieved in the first quarter of 2010.
'India's current hydrocarbon oil and gas production is 1.3 million boepd. With Reliance's contribution in the energy sector, India's indigenous production of hydrocarbons will increase by over 40 percent in the next 18 months,' he added. RIL estimates that the production from the KG-D6 facility will save India an annual foreign exchange outflow of $20 billion.
Reliance is selling the first oil from D6 to HPCL's Vizag refinery on spot basis, and will look for long-term contract when production stabilises when it reaches peak. Gas output, to begin with, will be around 15 million standard cubic metres per day, rising to 40 million standard cubic metres per day in three months.
The KG-D6 block in Krishna Godavari basin is located in the Bay of Bengal, off the coast of Andhra Pradesh. RIL holds 90 percent participating interest and Niko Resources Ltd. holds the balance.
Reliance Industries is the largest exploration acreage holder in the private sector in India. Its exploration & production (E&P) assets consist of 54 blocks spanning eight nations. With 42 discoveries to date, Reliance has a success ratio of over 60 per cent.