RIL cuts its gas reserves estimate by 7%

Energy conglomerate Reliance Industries has cut estimates for proven gas reserves in its Indian blocks by 6.7% to 3.67 trillion cubic feet, it said in its annual report.

Reliance's growth outlook has been marred by falling gas output from its huge gas fields, with production less than half of what was originally estimated.

On Tuesday, oil minister said gas output at Reliance's D6 block, off the Andhra coast, is projected to decline to 20 million standard cubic metres a day (mscmd) in 2014/15 from an estimated 28 mscmd in this fiscal year.

Earlier this year, Canadian oil and gas producer Niko Resources Ltd, which owns a 10% stake in the D6 block, said it expects lower natural gas reserves at the block and the area's geological model may need to be revised.