Reliance Industries Output to Fall in KG Basin
March 18, 2011
Reliance Industries Ltd has submitted to DGH that the gas production from KG-D6 may fall to 47mmscmd in FY13. Further the five new wells proposed to be drilled up to FY13 can’t be brought to production until mid 2014.
This is in reply to earlier comments by DGH that the gas production from KGD6 would rise to 67mmscmd in April 2011. RIL is attributing increasing water cut trends in the wells which could bring down the production further.
RIL’s submission is however silent on production levels in FY12. RIL has further stated that the five new wells proposed to be drilled up to FY13 can’t be brought to production until mid 2014. The decline in gas production to 47mmscmd would negatively impact FY13 EPS estimates by as high as 5%.