RIL to spend over $12b to develop three gas basins

Wednesday, December 12, 2007

RIL will invest over $12 billion to develop its gas finds in the Krishna Godavari (KG) basin, Mahanadi and the North East Coast. Of this, about $8.8 billion has been earmarked for its biggest find in the KG basin that will yield 80 million metric standard cubic meters per day (mmscmd) of gas.

An additional $3 billion will be used to develop the gas fields in the Mahanadi and NEC basins over the next four years. The company has submitted the development plan to the upstream regulator, the Directorate General of Hydrocarbons (DGH) for approval, sources close to developments said.

Over 98% of RIL’s revenues currently come from refining and petrochemicals, with oil and gas production accounting for only about 2%. This ratio is likely to change substantially over the next few years, when commercial production from KG begins.