Reliance Industries Cuts Proven Gas Reserve Estimate On D6 Output Decline
05/09/2012| 01:12am US/Eastern
Reliance Industries Ltd. (500325.BY) has cut its estimate of total proven gas reserves by 6.6% to 103.958 billion cubic meters due to lower-than-estimated output from its east coast gas field.
Reliance's average daily gas production from the D6 block in Krishna Godavari basin was 42.65 million standard cubic meters a day versus a target of 70 mmscm/d in the financial year that ended March 31.
India's largest private refiner said in its annual report to shareholders that its production decline has been steeper than anticipated, with volumes connected to existing wells lower than estimated and gas outside the main channel in volumes that aren't economic and therefore not contributing to overall production.
Reliance holds a 60% stake in D6. BP PLC (BP.LN) owns 30% and Niko Resources has 10%. It also owns 30% of the Panna-Mukta-Tapti gas fields along India's west coast.
-By Rakesh Sharma, Dow Jones Newswires; +91-11-4356-3334; firstname.lastname@example.org