Reliance Industries Creates History, By India's First Deep-Sea Oilfield

Insync

-Staff

By Staff

Monday, September 22, 2008, 15:28

The Indian Billionaire, Mukesh Ambani announces yet another vital achievement of his. This time around it has been about the Reliance oil and petrol production.

The chairman declared in Mumbai on Sunday that the company has created history by flowing oil from the nation's first deep-sea oilfield. But gas production from the eastern offshore Krishna Godavari basin will begin in January next year, four months behind schedule.

"Reliance began oil production from its predominantly gas-rich D6 block on September 17, with initial oil flowing at the rate of 5,500 barrels per day," said Ambani. Crude oil production will reach 20,000 barrels per day in a month's time, and the peak output of 40,000 barrels of oil will be achieved in the first quarter of 2010.

Reliance is selling the first oil from D6 to HPCL's Vizag refinery on spot basis, and will look for long-term contract when production stabilizes when it reaches peak. Gas output, to begin with, will be around 15 million standard cubic meters per day, rising to 40 million standard cubic meters per day in three months.

This has created the quite a stir in the Indian business scenario and promises to bring about a massive change in the oil production.