RIL nears five month high as oil ministry approves capex plans

The stock outperformed the market by gaining 8% in past three trading days as compared to 2.8% rise in the benchmark Sensex

Reliance Industries (RIL) has moved higher by 2% at Rs 799, its highest level since March 15, 2012, after the oil ministry agreed to conditionally approve the capital expenditure plan of over $1 billion for KG-D6 gas block.

“The Management Committee asked RIL-BP combine to drill more wells to confirm the three satellite gas finds - D-29, 30 and 31 in the KG-D6 block. The appraisal wells would have to be drilled by RIL-BP at their own cost for which the government will not allow any cost recovery,” PTI report suggests.

RIL is the operator of KG-D6 block with 60% stake while BP has 30% interest. Niko Resources of Canada has the remaining 10% stake.

The stock outperformed the market by gaining 8% in past three trading days on the BSE as compared to 2.8% rise in the benchmark Sensex. A combined 3.14 million shares have changed hands on the counter so far on the NSE and BSE.