Reliance Industries' new gas discovery likely biggest ever: oil minister

Reliance Industries (RIL), which has come under criticism over the falling gas production from its KG-D6 basin, got a boost when oil minister Veerappa Moily said the oil & gas major's recent gas discovery could be the biggest ever in the country.

Mukesh Ambani-owned RIL in May this year had announced a huge natural gas discovery, possibly the biggest find ever in the country. The new discovery could be the key to arresting the falling output from KG-D6 block.

Addressing a press conference, Mr Moily said RIL's new gas discovery could be the biggest ever in the KG basin.

The discovery, named 'D-55', has been notified to the government of India. This discovery is expected to add to the hydrocarbon resources in the KG D6 block. RIL is the operator of KG D6 with 60 per cent equity. BP has a 30 per cent share and NIKO the remaining 10 per cent.

Reliance Industries'  D-55 gas discovery, which is located two-kilometers below the currently producing fields in the eastern offshore KG-D6 block, may span about 60 square kilometers, RIL's partner NIKO recently said.

RIL shares were flat today, trading at Rs 850 on the BSE at 12:14 pm. The falling gas output from the KG-D6 wells have been a drag on the RIL's shares which have not been able to outperform the broader markets despite good performance from its refining and petrochem businesses. (With Agency inputs)