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RIL gains after reports of plans to revive offshore India gas project

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Capital Market
Last Updated : May 27 2016 | 2:28 PM IST

Reliance Industries gained 1.99% to Rs 965.50 at 14:05 IST on BSE after reports that the company is preparing to revive offshore India gas project by December 2017.

Meanwhile, the S&P BSE Sensex was up 245.39 points or 0.93% at 26,611.20.

On BSE, so far 1.9 lakh shares were traded in the counter as against average daily volume of 3.37 lakh shares in the past one quarter. The stock hit a high of Rs 968 and a low of Rs 949.50 so far during the day. The stock had hit a 52-week high of Rs 1,089.50 on 15 January 2016. The stock had hit a 52-week low of Rs 819 on 24 August 2015. The stock had underperformed the market over the past one month till 26 May 2016, falling 6.9% compared with Sensex's 1.38% rise. The scrip had also underperformed the market in past one quarter, dropping 0.41% as against Sensex's 13.87% rise.

The large-cap company has equity capital of Rs 3241.29 crore. Face value per share is Rs 10.

Reliance Industries (RIL) is reportedly preparing to restart work in four offshore oil and gas blocks, including one of India's biggest natural gas discoveries, as it seeks to revive development activity stalled for seven years by disputes with the government.

RIL has held meetings with oilfield-services companies to discuss the projects, which it aims to begin by December 2017, report added. The company plans to drill 21 wells in four offshore areas, including the deepwater KG-D6 block in the Bay of Bengal.

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Reliance is partners with BP Plc and Niko Resources for the KG-D6 block. RIL aims to initially focus on parts of the KG-D6 block known as the R-cluster, satellite and MJ discoveries. It plans to finalize the investment and work plan by the end of this year.

Production from the D6 block in the Krishna Godavari basin off the country's east coast, discovered in 2002, has fallen 85% to 9 million standard cubic meters a day. The company has continued with offshore exploration activities, while pausing development drilling as its been locked in disputes with the government over gas prices and cost recovery.

On consolidated basis, RIL's net profit rose 15.9% to Rs 7398 crore on 10.7% decline in net sales to Rs 60252 crore in Q4 March 2016 over Q4 March 2015.

RIL is a diversified firm having presence in oil exploration, petrochemicals, retail and telecom sectors.

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First Published: May 27 2016 | 2:04 PM IST

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