RIL to pump oil from KG-D6 early next year

Reliance Industries chairman Mukesh Ambani today announced that oil production from KG basin would start early next year, with an initial output of 5.5 lakh barrels a day, and the company would account for 40-45 per cent domestic oil and gas production going ahead.

Making a major announcement on the company's oil and gas operations at an Editors' conference, Ambani said the gas produced from its KG-D6 block would be offered at a base price of $4.2 per mmBtu (or about $26 a barrel oil equivalent).

However, there was no clarity on when and what condition the gas could be sold in view of the stay on RIL from selling gas from the block to any third party, pending disposal of a litigation between RIL and younger brother Anil Ambani's group company RNRL.

Asked if the company could sell the gas in the present condition and if Mukesh Ambani was willing to meet Anil in this connection, RIL spokesperson Paresh Chaudhry said the issue is sub-judice. As per the available indication, any such meeting is unlikely.