12-06-08 Mukesh Ambani-led Reliance Industries Ltd. (RIL) is all set to become the single largest gas producer in the country with a more than 50 % market share.
Production of gas from KG-D6 and other oil blocks will catapult Reliance into the single largest gas producer in the country with more than a 50 % market share, RIL's Chairman and Managing Director, Mukesh Ambani told shareholders of the company. With ever-increasing demand for oil and petroleum products, the company's foray into exploration and production will contribute significantly to value creation.

In addition to development of KG-D6, the company will continue its ongoing efforts of exploration and development of various blocks, Ambani said at the 34th annual general meeting of the company. The high oil price environment and stretched refining systems would also benefit the company, he added.
We expect this business segment to deliver sustainable long term returns, Ambani said.

Ambani said that Reliance's efforts were now strongly focused on two projects, the development of the KG-D6 block and the implementation of the new refinery at Jamnagar, through its subsidiary RPL.
"Our new refinery will be operational in the second half of FY09. The completion of the refinery will increase Reliance's ability to process crude oil from 0.66 to 1.24 mm bpd, equivalent to about 2 % of global capacity," Ambani said.

The 580,000-bpd is being built adjacent to Reliance's existing unit of 660,000-bpd plant at Jamnagar. The commissioning of oil and gas production systems will make Reliance one of the largest deep-water oil and gas companies in the world.
Ambani said that the company had 41 discoveries to date and an overall success ratio of 63 %. Its coal based methane (CBM) block in Sohagpur has a capacity of 3.76-tcf. The East-West gas pipeline from KG-D6 will be completed by the year-end, he added.

Deep water exploration activities would be expanded with the additional of six rigs by H2 FY09.
"We have been allotted two blocks in Yemen, three in Peru and have gross, contingent reserves of 5 bn barrel oil equivalent. The gross reserves are accretive to target 10-bn barrels of oil equivalent," Ambani said.
Ambani also informed that Reliance will sell gas this year at $ 25 per barrel equivalent.