Reliance shares are on their way to receive a boost in their standings and will go upward by 67 million metric standard cubic meters a day by April, as declared by one of India’s upstream regulator. Reliance is said to drill 4 more wells in the Krishna-Godavari basin where it currently produces about 53 million metric standard cubic meters a day from the D6 block off the east coast of India. The news of the rise in quantity was announced by Director General of Hydrocarbons, S.K. Srivastava.
Due to the hike in production happening much sooner than expected, analysts from Mumbai’s Angel Broking claim that the stock prices will definitely see a surge in ratings. Growth of gas production had posed some concerns for the company in the previous quarter. While Reliance is producing less than its optimum capacity of 80 million metric standard cubic meters, that is soon about to change for the better. Recently Mukesh Ambani, the head honcho of Reliance Industries, sold take in 23 oil and gas blocks to BP in a $7.2 billion deal, which will help it benefit from the technical expertise that BP has in deepwater exploration. If all goes according to plan, 59 million metric standard cubic meters will come from D1 and D3 fields while another 8 will be contributed by the MA1 field.
While the plan may be slightly delayed, Reliance is said to reach its optimum capacity of 80 million metric standard cubic meters by 2013.Labels: Mukesh Ambani, Reliance, Reliance Industries, RIL