DGH aproves Reliance Industries initial development plan for KG block

Reliance Industries Ltd has announced that The Directorate General of Hydrocarbons (DGH) approved addendum to the initial development plan for the Deepwater Block KG - DWN - 98/3 (referred to as KG - D6).

As per the approved addendum the capital expenditure for initial phase of development to produce 80 mmscmd of gas is $5.2 billion.

The development plan envisages commencement of delivery of first gas by second half of 2008-09.

The Deepwater block KG - D6 in Krishna Godavari Basin off the East coast of India in Bay of Bengal was awarded to the Company and NIKO Resources Ltd, Calgary, Canada (NIKO) under NELP - 1 bidding round. The Company, as operator of the block holds 90% of the participating interest and NIKO the remaining 10%.

The block covers an area of 7645 sq kms and its north-western boundary is about 40-60 kms southcast of Kakinada in Andhra Pradesh. Water depth in the block ranges upto 2700 m.

The Company made the world's largest gas discovery in 2002 in this block.

Source : Equity Bulls

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