Reliance in talks with HPCL, CPCL, KRL for D6 oil

Reliance in talks with HPCL, CPCL, KRL for D6 oil

Reliance Industries is in talks with state refiners for sale of crude oil it plans to start pumping from its eastern offshore KG-D6 block from next month. The company is in advanced talks with Hindustan Petroleum Corp, Chennai Refinery and Kochi Refineries for sale of 34,000 barrels per day of oil it will start producing from the gas-rich KG-D6 block on Krishna Godavari basin from September. "We do not intend to use the D6 oil in our Jamnagar refinery and are close to tying up sales with state-refiners," a company source said.

The company is investing USD 2.234 billion in developing the MA-1 and MA-2 oil fields in the predominantly gas-rich block. Oil reserves in the block are estimated at 53.5 million barrels and production will last 11 years, beginning with 20,000 bpd in first year and rising to 30,000 bpd in second year before beginning to decline.

Sources said the Aker Smart-1 floating production storage and offloading system (FPSO) is expected on the field any day now. It may take 4-6 weeks to install at the field and oil production will begin soon after. The FPSO, contracted for USD 733 million, will help eliminate the need for piping the oil to the shore for onward transportation to refineries.

Oil tankers can directly load at the FPSO and carry the oil to the destined refineries. Reliance is separately investing USD 5.2 billion in phase I of its gas field development plan, the first output of which is expected around the same time as oil.


Other ET top stories:
What made RIL a global player?
Tesco to invest Rs 480 cr in India, ties up with Tata
Market Review: Investors book profit ahead of P-notes meet
Infosys cuts down hiring target by 10,000 this fiscal
UBS posts Q2 losses, writedowns of $5.1 bn

Min No To Special Oil Tax
Bindra magic: Now, corporates to sponsor shooting
Cabinet forms committee to review impact of high ATF prices
Min No To Special Oil Tax
Award damages if gas pact with RIL doesn't work out: RNRL

L&T bags Rs 38.16 bn order from metal industry
Reliance Retail to bring UK's Hamleys toys to India

Stocks to watch: Elder Pharma
Stocks to watch: Jindal Saw
AnandRathi assigns 'buy' to Crompton Greaves; target Rs 320
Buy Punj Lloyd for target Rs 532: Sharekhan
ULJK assigns accumulate on Voltamp Transformers; target Rs 1025

Stocks to watch : Punjab National Bank
Stocks to watch: Panacea Biotec, Texmaco
MF Global Sify puts hold on VIP Industries
Sharekhan puts 'buy' on Aban Offshore; target Rs 4829


Source:ET, http://economictimes.indiatimes.com/headlines.cms