Ril plans to reassess its $1.53 bn capex, recoverable reserves at KG-D6 satellite fields

ByAashika Jain

**Mumbai:**Reliance Industries Ltd. has said it plans a $1.53 billion capex for four discoveries at its satellite fields in the Krishna Godavari Basin in Andhra Pradesh. RIL - whose block at the Basin is the KG-D6 block, where it had discovered India’s biggest natural gas reserves in 2002 - also plans to reassess thepotential of the KG-D6 satellite fieldsand its recoverable reserves.

Capex is the company’s fund used to acquire or upgrade physical assets like equipment, property, etc.

RIL has for long been saying that it is necessary to hike gas production from its KG-D6; and the Directorate General of Hydrocarbons’s (DGH) - the regulatory authority for oil and natural gas resources -Management Committee on 3 January finally gave the company’s field development plans (FDP) a go ahead.

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[caption id=“attachment_193957” align=“alignleft” width=“380” caption=“The company will reassess its recoverable reserves.”]  [/caption]

Sources say since these plans are now over two years old and were prepared with limited benefits of real life production from the KG-D6, in mind, it was best to update these plans and validate costs that had been originally submitted in December 2009.

Sources also say that the company has three years worth data on the production profile from D1 to D3 and it will revalidate its assumptions based on that data.

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RIL had earlier said these four discoveries have a recoverable potential of 0.6 trillion cubic feet of produce. Sources also added that the company will have to submit its revised capex and assessment to the regulatory authority’sManagement Committee. The company plans to utilise the current weather window to reassess its satellite field and undertake geological studies.

RIL has told CNBC TV-18 that work on the same has been initiated since getting approval, but that it would be premature to say anything on a change or revision.