RIL gains on business updates regarding the KG D6 project

Reliance Industries (RIL) rose 1.18% to Rs 1402.20 after it informed that new production from KG D6 project on track to start by mid-2020.

In an exchange filing made after market hours yesterday, the company said that the RIL-BP joint venture today confirmed that it has completed the safe cessation of production in a planned manner, from the D1 D3 field in Block KG D6 (KG-DWN-98/3), off the east coast of India. The D1 D3 field was India's first deepwater gas field to be put on production in April 2009.

The RIL-BP joint venture has successfully worked to extend the life of production from the D1 D3 Field which otherwise would have ceased production in 2015 due to issues of reservoir pressure and water ingress. Through innovation and application of first-of-their kind solutions, the field's life was extended for almost five years, to February 2020, maximizing the recovery from the field.

The joint venture has committed an additional $5 billion (Rs 35,000 crore) of investments towards monetizing about 3 trillion cubic feet equivalent (about 500 million barrels of oil equivalent) reserves from three projects - R cluster, Satellite cluster and MJ fields.

The first-gas from these fields is expected in mid-2020. The peak production from these three fields is expected to reach 1 billions of cubic feet equivalent per day which is about 15% of the then envisaged India's demand.

RIL is engaged in refining, including manufacturing of refined petroleum products, and petrochemicals, including manufacturing of basic chemicals, fertilizers and nitrogen compounds, plastic and synthetic rubber in primary forms.

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