RIL strikes gas at eight more spots in KG basin

The KG basin off the Andhra coast seems to hold bigger treasures for Reliance Industries Ltd. (RIL) than expected. The company has now struck gas at eight more locations in the Krishna-Godavari (KG) basin, which it intends to develop at an approximate cost of $ 3 bn.
RIL has already sought permission from directorate general of hydrocarbons to develop these finds. This is over and above the 80 mm cmpd of gas planned to be produced from D-1 and D-3 fields in the hydrocarbon-rich basin for an investment of $ 8.7 bn.

Confirming this, a company source told: "We have submitted the development plan to the DGH for eight gas finds in the KG basin. This development plan is in addition to the D-1 and D-3 fields in the same block."
"Such developments require billions of dollars," he said.

DGH has already approved RIL's oil discovery in the MA well. This is expected to produce 40,000 boepd and 240-350 mm cfpd of gas. The MA development entails investment of $ 2.34 bn.
Commenting on RIL's discovery in the KG basin, a senior RIL executive had earlier told: "Our discoveries are coming faster than we can handle. For the time being, our entire focus is to bring out gas from D-1 and D-3 fields."

RIL's gas production is likely to account for 50 % of India's total gas output in couple of months.