New Delhi: Reliance Industries on Wednesday said the Government had approved its $5.2 billion plan to develop a deep-sea gas field to pump 80 million cubic metres a day.
The Directorate General of Hydrocarbons approved addendum to the initial development plan of RIL for the deepwater Block KG-DWN-98/3 (KG-D6).
This approval will allow Reliance to double the output from its gas field in Krishna Godavari (KG) basin at an enhanced investment of $5.2 billon.
Reliance will invest $5.2 billion in Phase-I of the development involving drilling of 22 wells. Together with the Phase-II committment of 28 additional wells, the total project cost would be $8.84 billion.
The company had earlier planned to invest $2.47 billion to produce only 40 million cubic metres a day. But in November, with rig prices going up and more reserves being found in the block, the company raised the capex and doubled the estimated output.
Output from Reliance's field is expected to double natural gas output in the country and reduce growth in demand for liquid fuel.
The development plan envisages commencement of delivery of first gas by second half of 2008-09, said Reliance.
The block KG-D6 in Krishna Godavari basin in the Bay of Bengal was awarded to RIL (90 per cent) and NIKO Resources of Canada (10 per cent) under NELP-I bidding round.
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