Reliance Industries (RIL) is in talks with state refiners for sale of crude oil that it plans to begin pumping from its eastern offshore KG-D6 block next month.
The company is in advanced talks with Hindustan Petroleum Corporation, Chennai Petroleum Corporation and Kochi Refineries for sale of 34,000 barrels per day of crude oil once the production begins in September.
“We do not intend to process the D6 oil at our Jamnagar refinery and are close to tying up sales with state-refiners,” a company source said.
The company is investing $2.234 billion for developing the MA-1 and MA-2 oil fields in the predominantly gas-rich block.
Oil reserves in the block are estimated at 53.5 million barrels and production will last 11 years — beginning with 20,000 bpd in the first year and rising to 30,000 bpd in second year before it begins to decline.
RIL is separately investing $5.2 billion in the first phase of its gas field development plan, the first output of which is expected around the same time as oil.
