Reliance strikes gas off Orissa coast

Initial estimates indicate in-place volume of about 4-5 trillion cubic feet.

Reliance Industries has struck gas off Orissa in the Bay of Bengal, Chairman and Managing Director Mukesh Ambani told shareholders at the company's 30th annual general meeting here yesterday.

Initial estimates indicate the in-place volume of gas in exploration block NEC-OSN-97/2 is about 4-5 trillion cubic feet. Reliance already has 14 trillion cubic feet of in-place gas in the Krishna-Godavari basin.

Ambani informed the shareholders that "as Reliance completes exploration efforts, we can expect internal synergy between feedstock and petrochemicals manufacturing to come into play. This will bring about greater global competitiveness based on better feedstock availability and lower costs."

Reliance is also looking overseas for energy security. "Our plan is to achieve 30 per cent energy security for the Jamnagar refinery within the next 10 years and up to 50 per cent by 2020. This will be achieved through acquisition of oil companies and participation in exploration projects," Ambani said. Reliance has a 25 per cent interest in an exploration block in Yemen that has struck oil. "Four wells were drilled in this block and three discoveries were made," he said.

Ambani said Reliance would invest Rs 2,500 crore in exploration and production of oil and gas over the next 30 months.

The investments are over and above those made in the downstream sector, including in the setting up of retail outlets.