Reliance Industries (RIL) has informed the oil ministry that the development cost of its Krishna Godavari basin project is among the lowest in the world. Goldman Sachs study found that RIL’s development cost of $5 a barrel was not only among the lowest in the world but also better than its competitors in India.
Recently, the Reliance Anil Dhirubhai Ambani Group’s campaign claimed that the government may lose up to Rs 30,000 crore due to increase in the capex of KG gas field.
Also, RIL’s agreement with the government may lead to a hike in retail power tariff. RIL has called these allegations, “malicious, baseless, mischievous and ill-informed.”
The increase in reserves by over 2.5 times; increase in the number of wells; trebling of production facilities; and other factors resulted in the hike in capital expenditure from Rs. 12,000 crore to Rs. 45,000 crore, said PMS Prasad, RIL’s president and CEO (petroleum).
Labels: KG Basin, PMS Prasad, Reliance, Reliance Group, Reliance Industries Limited, RIL