Reliance Industries shares extended gains and climbed almost 2 per cent today on expectations of higher production at its gas fields in the KG-D6 block.
The stock rose 1.93 per cent to Rs 885.80 at the close on the BSE, giving it a market valuation of Rs 2,86,281 crore. During the day, the shares had rallied as much as 3.8 per cent to Rs 902.40. Reliance had advanced 5.71 per cent on Friday.
BP, which bought a 30 per cent stake in RIL's 21 oil and gas blocks for USD 7.026 billion in 2011, said it is working with its partner to arrest the output decline in the KG-D6 fields.
"Following approval by the relevant authorities in 2012, a number of activities are being progressed to arrest the decline in production rates and to extend the life of the block KG-D6 producing fields. These include new work-over wells and the installation of additional compression and water handling capacity," BP said in its 2013 annual report.
BP also said in the report that two significant gas and condensate discoveries had been made in the Krishna-Godavari basin and the Cauvery basin. These resources have the potential to increase gas supplies from 2018 and improve the country's energy security, it said.
Marketmen said Reliance's expansions plans, along with an expected gas price hike from April, should help the company's earnings.
