RIL rises for fourth session

Reliance Industries (RIL) rose 0.64% to Rs 2005, extending gains to fourth consecutive session.

The stock has added 1.57% in four sessions while the benchmark S&P BSE Sensex has added 1.51% during the same period.

RIL and bp on Friday announced the start of production from the R Cluster, ultra-deep-water gas field in block KG-D6 off the east coast of India.

RIL and bp are developing three deepwater gas projects in block KG D6 - R Cluster, Satellites Cluster and MJ - which together are expected to meet approximately 15% of India's gas demand by 2023. These projects will utilise the existing hub infrastructure in KG D6 block. RIL is the operator of KG D6 with a 66.67% participating interest and bp holds a 33.33% participating interest.

R Cluster is the first of the three projects to come onstream. The field is located about 60 kilometers from the existing KG D6 Control & Riser Platform (CRP) off the Kakinada coast and comprises a subsea production system tied back to CRP via a subsea pipeline. Located at a water depth of greater than 2000 meters, it is the deepest offshore gas field in Asia. The field is expected to reach plateau gas production of about 12.9 million standard cubic meters per day (mmscmd) in 2021.

Mukesh Ambani, chairman and managing director of RIL, added: "We are proud of our partnership with bp that combines our expertise in commissioning gas projects expeditiously, under some of the most challenging geographical and weather conditions. This is a significant milestone in India's energy landscape, for a cleaner and greener gas-based economy. Through our deep-water infrastructure in the Krishna Godavari basin we expect to produce gas and meet the growing clean energy requirements of the nation."

The next project, the Satellites Cluster, is expected to come onstream in 2021 followed by the MJ project in 2022.

Peak gas production from the three fields is expected to be around 30 mmscmd (1 bcf/d) by 2023 which is expected to be about 25% of India's domestic production and will help reduce the country's dependence on imported gas.

RIL is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services.

The conglomerate's consolidated net profit fell 6.6% to Rs 10,602 crore on 25.5% decline in net sales to Rs 1,11,236 crore in Q2 September 2020 over Q2 September 2019.

Powered by Capital Market - Live News