Within a year of signing exclusive joint ventures with three US based shale gas companies, Mukesh Ambani led Reliance Industries Limited (RIL) is already earning its return on investment via a share of 35 million units of gas, which is soon to level at over 50 million units of gas per day.
Reliance Industries has inked exclusive joint ventures with US based Chevron (RIL- Chevron), Carrizo (RIL- Carrizo) and Pioneer (RIL-Pioneer). At present, RIL-Pioneer JV is producing 165 million standard cubic ft per day (mscfd) of shale gas and 13,800 barrels per day of condensate. The RIL-Chevron JV has drilled nine additional wells during the quarter ending on June 30th, with production rate from its 22 gas producing wells leveling at 51 mscfd during the quarter. RIL will put about 15 wells for production under the RIL-Carrizo shale gas JV and it is already in the final stages of construction of a pipeline for selling the gas to consumers following which the production from wells will commence.
Already, RIL’s venture into shale gas sector in the US has started yielding dividends with the joint ventures with Chevron and Pioneer leading the count, and with RIL- Carrizo JV expected to commence production in the second half of 2011-12 fiscal year, the total production from three JVs will surpass 50 million units of gas per day count.
Reliance Industries has already invested close to $ 400 million in its shale gas joint venture projects in the US during the April-June financial quarter, which was the best ever financial quarter for Reliance in the last three years. Experts believe that RIL's next phase of growth is going to come from the US Shale gas business and Mukesh Ambani's decision to go all hands in the shale gas segment will certainly yield rich dividends in future as well
Labels: Mukesh Ambani, Reliance, Reliance Industries, RIL