With a FPSO (Floating, Production, Storage and Offloading) vessel set to stream into Kakinada from Singapore shortly, Reliance Industries Ltd is preparing to extract crude from its Krishna Godavari basin wells by the second half of September. This will be the first deepwater well in the country to produce crude. The FPSO handled by Aker of Norway is being built at Jurong Shipyard, Singapore, and is being leased by RIL for a three-year period. The MA Fields in the D-6 block in the KG basin will produce about 40,000 barrels a day. After the FPSO moves to Kakinada shores from Singapore, within a couple of weeks they hope production to start from these wells. Initially, it could be about 15,000 barrels a day to be gradually increased to 40,000 barrels a day.
Showing posts with label RIL. Show all posts
Showing posts with label RIL. Show all posts
Wednesday, August 13, 2008
Saturday, April 19, 2008
RIL, Marks & Spencer In 49:51 Venture
As expected, Reliance Industries (RIL) and Britain's Marks & Spencer Group plc announced their joint venture on Friday, but what RIL stands to gain from the partnership remains to be seen.
Marks & Spencer is known for high quality clothes, home products and food.
Though RIL is already present in at least two of these three categories, it is not yet perceived as a retailer of premium and luxury goods.
RIL has agreed to be the minority partner in the company, called Marks & Spencer Reliance Retail India, by holding 49% stake.
The joint venture is expected to open at least 50 new stores across the country in the next five years.
Interestingly, Planet Retail, which is the existing franchisee in India for Marks & Spencer, would continue to operate the 14 stores it has.
Planet Retail is the same franchisee company which was earlier trying to get US coffee major Starbucks into India so that its continuation as a franchisee for Marks & Spencer leaves some questions unanswered.
Will the stores run by Planet Retail and those under the joint venture have separate product lines and price points?
There was no clarity from the partners on this.
The value of the initial investment into the joint venture will be up to £29 million or Rs 229 crore (in cash or in kind) between the parties, with both parties agreeing to provide further funding in the future.
The joint venture will have the right to operate Marks & Spencer stores in India selling items such as women's, men's and children's clothing as well as homewares.
The chief executive officer of Marks & Spencer Reliance India will be Mark Ashman while the chief financial officer will be Jatin Luthra.
Marks & Spencer is known for high quality clothes, home products and food.
Though RIL is already present in at least two of these three categories, it is not yet perceived as a retailer of premium and luxury goods.
RIL has agreed to be the minority partner in the company, called Marks & Spencer Reliance Retail India, by holding 49% stake.
The joint venture is expected to open at least 50 new stores across the country in the next five years.
Interestingly, Planet Retail, which is the existing franchisee in India for Marks & Spencer, would continue to operate the 14 stores it has.
Planet Retail is the same franchisee company which was earlier trying to get US coffee major Starbucks into India so that its continuation as a franchisee for Marks & Spencer leaves some questions unanswered.
Will the stores run by Planet Retail and those under the joint venture have separate product lines and price points?
There was no clarity from the partners on this.
The value of the initial investment into the joint venture will be up to £29 million or Rs 229 crore (in cash or in kind) between the parties, with both parties agreeing to provide further funding in the future.
The joint venture will have the right to operate Marks & Spencer stores in India selling items such as women's, men's and children's clothing as well as homewares.
The chief executive officer of Marks & Spencer Reliance India will be Mark Ashman while the chief financial officer will be Jatin Luthra.
Monday, April 14, 2008
Reliance Gets Ready To Test East-West Gas Pipeline
New Delhi: Reliance Gas Transportation Infrastructure Ltd (RGTIL), a Mukesh Ambani-led company, which is implementing the 1,440-km pipeline project from Kakinada (Andhra Pradesh) to Baruch (Gujarat) to transport gas from Reliance Industries Ltd’s (RIL) east-coast fields, expects to start testing (dry run) the pipeline shortly.
Sources told Business Line that “the east-west pipeline for carrying gas from the D6 block of Krishna-Godavari Basin will have the capacity to transport 120 million cubic metres a day (mcmd) of gas.
“The company plans to start testing the pipeline network in phases. We have received all the pending clearances including the environmental clearance for the pipeline to pass through a forest area in Maharashtra.”
Completion
Initially, the company was expecting to complete the project by March, but now the company is looking at end May.
RGTIL plans to connect the pipeline to GAIL (India) Ltd’s network near Uran. It would be a two-way pipeline. Subsequent to the east-west network, the RGTIL would be extending the pipeline to Chennai, Bangalore and Mangalore.
Nearly 1,500 Chinese workers are involved in the project, estimated to cost $3.5 billion. The Government in September 2007 had approved RIL’s price of $4.20 an mBtu for gas delivered at Kakinada. This excluded the marketing margins, transportation tariff and taxes.
Transportation charges
A new tariff plan for the transportation of gas indicates that consumers close to the KG basin will pay $0.17 an mBtu (million British thermal unit), while those in other parts of the State $0.45, and consumers in the rest of the country would pay $0.93.
D6 block development
RIL has completed almost 80 per cent of both offshore (platforms in deepwater) and onshore (terminal at Kakinada) tasks in the D6 block, sources said.
While most of the work offshore is over, the onshore work is on course for the company to meet the gas production target from D6. RIL is looking at the third quarter of the current fiscal to start production - a delay of about three months from its earlier target of a June-July 2008 start for gas production.
Within the D6 block, Reliance is developing Dhirubhai 1 and Dhirubhai 3 fields, with estimated 14.5 trillion cubic ft gas (TCF) reserves and MA fields with 140 million barrels of oil reserves. The company plans to produce 80 mcmd gas and 1.5 lakh barrels oil a day from it.
Peak output
The peak production from the field is expected to be 120 mcmd of gas.
Reliance holds 90 per cent interest in KG-DWN-98/3 or KG-D6 block while Niko holds the remaining 10 per cent.
On the exploration front, the company has planned to drill 22 wells out of which 17 have been drilled and five are in different stages of completion.
Sources told Business Line that “the east-west pipeline for carrying gas from the D6 block of Krishna-Godavari Basin will have the capacity to transport 120 million cubic metres a day (mcmd) of gas.
“The company plans to start testing the pipeline network in phases. We have received all the pending clearances including the environmental clearance for the pipeline to pass through a forest area in Maharashtra.”
Completion
Initially, the company was expecting to complete the project by March, but now the company is looking at end May.
RGTIL plans to connect the pipeline to GAIL (India) Ltd’s network near Uran. It would be a two-way pipeline. Subsequent to the east-west network, the RGTIL would be extending the pipeline to Chennai, Bangalore and Mangalore.
Nearly 1,500 Chinese workers are involved in the project, estimated to cost $3.5 billion. The Government in September 2007 had approved RIL’s price of $4.20 an mBtu for gas delivered at Kakinada. This excluded the marketing margins, transportation tariff and taxes.
Transportation charges
A new tariff plan for the transportation of gas indicates that consumers close to the KG basin will pay $0.17 an mBtu (million British thermal unit), while those in other parts of the State $0.45, and consumers in the rest of the country would pay $0.93.
D6 block development
RIL has completed almost 80 per cent of both offshore (platforms in deepwater) and onshore (terminal at Kakinada) tasks in the D6 block, sources said.
While most of the work offshore is over, the onshore work is on course for the company to meet the gas production target from D6. RIL is looking at the third quarter of the current fiscal to start production - a delay of about three months from its earlier target of a June-July 2008 start for gas production.
Within the D6 block, Reliance is developing Dhirubhai 1 and Dhirubhai 3 fields, with estimated 14.5 trillion cubic ft gas (TCF) reserves and MA fields with 140 million barrels of oil reserves. The company plans to produce 80 mcmd gas and 1.5 lakh barrels oil a day from it.
Peak output
The peak production from the field is expected to be 120 mcmd of gas.
Reliance holds 90 per cent interest in KG-DWN-98/3 or KG-D6 block while Niko holds the remaining 10 per cent.
On the exploration front, the company has planned to drill 22 wells out of which 17 have been drilled and five are in different stages of completion.
Friday, April 11, 2008
RIL Mulling Over New Foreign Partner
RIL, the country''s most valued firm, is mulling over bringing a new strategic foreign partner in its KG Basin D-6 block. Markets gave a thumps up with the stock spiralling to an intra-day high of Rs 2519. Reliance is willing to get another ally along with its existing partner, Niko Resources, into the giant D6 natural gas block. It may sell 10 per cent equity in the exploration block to the new partner. Meanwhile, bluechip investment bank Goldman Sachs is lining up potential suitors. The KG Basin has huge reserves estimated at 11 trillion cubic feet. There''s no surprise that the biggest names in the business are pouring over the data that shows exactly what lies under water in the Krishna-Godavari basin. The biggies include Exxon Mobil, Shell, BP and Chevron.
Wednesday, February 27, 2008
RIL Gas Discovers In Mahanadi Basin Block
Mumbai: Reliance Industries Ltd declared on Feb 26 that it had discovered gas in the NEC-OSN 97/2 (NEC-25) block located in the NEC-Mahanadi offshore basin, off the Orissa coast in Bay of Bengal. This shallow water block covers an area of 10,755 sq km and water depths ranging between 20 metres and 600 metres. This is the eighth discovery in the block. RIL had earlier discovered six consecutive commercial discoveries in this block, for which the development plan has been submitted to the Directorate General of Hydrocarbons for clearance. The block was given under the bidding round of NELP-I. RIL holds 90 per cent participating interest and the rest is held by NIKO Ltd.
Wednesday, February 20, 2008
RIL To Begin Methane Production From Sept
New Delhi: Reliance Industries (RIL) is all set to start production of coalbed methane (CBM) from its Sohagpur blocks in Madhya Pradesh by September, well ahead of its mid-2009 schedule. RIL is looking at producing around 5 million cubic metres of gas a day (mcmd) from the blocks, most of which will be used for a 500 mw power plant that the company plans to set up in the area.
An investment of around Rs 4 crore is required per megawatt for setting up a gas-based power plant. Thus, RIL''s 500 mw plant would involved an investment of around Rs 2,000 crore. RIL shares closed flat today at Rs 2,553 on the Bombay Stock Exchange. RIL will be the second company in the country to produce methane from coal beds after Kolkata-based Great Eastern Energy Corporation (GEECL), which began commercial production from its Ranigunj block near Asansol, in West Bengal, in July last year. CBM is a natural gas occurring in coal seams.
RIL will start with a production of around one mcmd of gas from the block to get to a peak level of five mcmd over the next couple of years. The block is estimated to have around 3.6 trillion cubic feet of gas reserves. Some of the gas will be sold to industries around Sohagpur. The company had originally planned to carry the gas by pipeline to Uttar Pradesh for industries there. RIL could, however, face opposition from the Anil Dhirubhai Ambani Group (ADAG) as the two brothers had agreed when they split not to enter each other''s business areas. ADAG is already in the power business through Reliance Energy and has plans for generation projects through Reliance Power. The government has awarded 26 CBM blocks for exploration so far, five of these to RIL. ONGC and Reliance Natural Resources of the Anil Ambani group also have CBM blocks.
An investment of around Rs 4 crore is required per megawatt for setting up a gas-based power plant. Thus, RIL''s 500 mw plant would involved an investment of around Rs 2,000 crore. RIL shares closed flat today at Rs 2,553 on the Bombay Stock Exchange. RIL will be the second company in the country to produce methane from coal beds after Kolkata-based Great Eastern Energy Corporation (GEECL), which began commercial production from its Ranigunj block near Asansol, in West Bengal, in July last year. CBM is a natural gas occurring in coal seams.
RIL will start with a production of around one mcmd of gas from the block to get to a peak level of five mcmd over the next couple of years. The block is estimated to have around 3.6 trillion cubic feet of gas reserves. Some of the gas will be sold to industries around Sohagpur. The company had originally planned to carry the gas by pipeline to Uttar Pradesh for industries there. RIL could, however, face opposition from the Anil Dhirubhai Ambani Group (ADAG) as the two brothers had agreed when they split not to enter each other''s business areas. ADAG is already in the power business through Reliance Energy and has plans for generation projects through Reliance Power. The government has awarded 26 CBM blocks for exploration so far, five of these to RIL. ONGC and Reliance Natural Resources of the Anil Ambani group also have CBM blocks.
Tuesday, February 12, 2008
RIL, RNRL Continue To Differ On Gas Supply Agreement
Even four months after the Mumbai High Court asked the Reliance Industries and Reliance Natural Resources, led by estranged Ambani brothers Mukesh and Anil respectively, to renegotiate the gas purchase pact between them, the companies continue to differ on all key points. Justice AV Mohta last year had asked both parties to sit together and renegotiate the Gas Supply Master Agreement. However, filing appeals before the division bench on Monday, they said they differ on all key issues.
The dispute is over an agreement whereby Reliance Industries was to supply gas for Reliance Natural Resources from Krishna-Godavari basin. RNRL had challenged the existing Gas Supply Master Agreement saying it was unfair and sought modifications in it. RNRL wanted certainty of tenure and the quantity of gas. Court will hear the case on February 25. Meanwhile, the interim order of High Court restraining RIL from creating third party interest in the gas to the extent of RNRL''s claim will continue till then, through mutual understanding.
The dispute is over an agreement whereby Reliance Industries was to supply gas for Reliance Natural Resources from Krishna-Godavari basin. RNRL had challenged the existing Gas Supply Master Agreement saying it was unfair and sought modifications in it. RNRL wanted certainty of tenure and the quantity of gas. Court will hear the case on February 25. Meanwhile, the interim order of High Court restraining RIL from creating third party interest in the gas to the extent of RNRL''s claim will continue till then, through mutual understanding.
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