Indian Stock Market

RIL Gas : Reliance Gas Production

RIL to begin production from KG-D6 block in Q3 of 2008

Reliance Industries will begin oil and gas production from its prolific eastern offshore D6 block in the third quarter of 2008 calendar year, the company’s junior partner Niko Resources of Canada has said.

Reliance is investing $5.2 billion to bring to production Dhirubhai-1 and 3 gas fields - two of the 18 finds made in the KG-DWN-98/3 (D6) block in Krishna Godavari basin. Alongside, it is also developing the MA oil field in the same block.

Both “oil and natural gas production is expected to commence in the third calendar quarter of 2008,” Niko said in its regulatory filing.

Volumes will ramp up to a targeted rate of 2.8 billion cubic feet per day (80 million standard cubic meters per day) of gas within first year of production. Peak oil output is seen at 40,000 barrels per day (2 million tons per annum).