Reliance no to international partners for gas deal
Wednesday, 06 November 2002, 20:30 IST
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MUMBAI: Reliance Industries has decided against roping in international partners in exploiting the gas reserves it has discovered in the Krishna-Godavari basin. Reliance Industries, along with Niko Resources of Canada, had jointly won 12 oil and gas blocks awarded under the New Exploration Licensing Policy. While Reliance held a 90 per cent stake in the venture, Niko Resources held 10 percent. Meanwhile, Reliance acquired Niko Resources' 10 per cent stake in 10 of the 12 oil and gas blocks. Now, Niko retains its holding in the deepwater block KG-DWN-98/3 in the Krishna Godavari Basin, where gas reserves estimated at seven trillion cubic feet has been discovered. Niko also retains its holding in shallow water block NEC-OSN-97/2. Under the original plan, the RIL-Niko consortium had committed investments of $760.49 million in three phases in the 12 blocks. The consortium will now invest $145.75 million in the KG-DWN-98/3 block in three phases spread over six to seven years. According to Reliance Industries, the discovery in the Krishna-Godavari basin is equivalent to about 1.2 billion barrels or 165 million tones of crude oil. The company said gas availability to consumers in the country would increase almost 60 percent based on the recoverable reserves of over five trillion cubic feet. The discovery is a giant step in ensuring energy security for India. "Higher energy security for India will promote higher levels of economic growth and development leading to better national security," said a company statement. Reliance plans to lay a pipeline from Kakinada in Andhra Pradesh to Goa passing through all major towns in the region, including Hyderabad, for distributing gas to industries and other consumers. Facing a widening gap between demand and supply, India is hoping for better availability of gas within the country with the new find. Currently, India's indigenous gas production is around 81 million standard cubic meters per day (MMSCMD) though the realization is only 65 MMSCMD. This leaves an unfulfilled gap of about 50 MMSCMD.
Source: IANS
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