Mumbai: Mukesh Ambani-led Reliance Industries announced a new crude oil discovery in the Krishna Godavari basin off the Andhra Pradesh coast.
"We recently had a discovery in MA1 well in the deep water D6 Block in the K-G basin, RIL Chairman Mukesh Ambani told shareholders in the company's annual general meeting on Tuesday.
The well could open up significant avenues in the area of oil exploration and distribution with a material impact on the future exploration potential of the block.
"The full potential of these discoveries in the two wells is under evaluation," he said, adding that the Directorate General of Hydrocarbons had declared the six gas discoveries in the NEC25 block of Mahanadi basin as commercial.
The oil-well project would also involve implementing one of the largest deep water gas development projects in the world.
"It entails transportation of gas through a 48-inch 1,400-kilometre long east coast to west coast pipeline, traversing the states of Andhra Pradesh, Karnataka, Maharashtra and Gujarat," said Ambani.
The pipeline project will be implemented through Reliance Gas Transporation Infrastructure Ltd (RGTIL).
The project is on, schedule with all necessary Government approvals in place.
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Ambani said RIL would have control over the pipeline but without any obligation to invest in the equity of RGTIL.
"The project is on schedule with all necessary Government approvals in place, major contracts awarded and delivery to consumers envisaged to take place by the second half of the financial year 2008-09," he said.
Besides retailing business, RIL is also emerging as a major global player in the field of petrochemicals. With 900,000 tonnes capacity of propylene being built by the company, Ambani said: "Reliance would emerge as the fourth largest producer of polypropylene in the world."
On the refining and marketing front, he said RIL, with the new refinery at Jamnagar under the banner of Reliance Petroleum Limited, will become the largest hub for petroleum refining in the world with a capacity to process 1.24 million barrels of crude oil per day.
Reliance has entered into a strategic alliance with US based Chevron Corporation, the second largest US headquartered Oil and Gas Company with revenues of $194 billion in 2005.
"The main objective of this tie-up was to optimise crude supply, product offtake and marketing from the refinery and also collaborate in other areas of the energy value chain," he added.
Chevron has acquired a five per cent stake in RPL, with an option to increase the stake to 29 per cent, Ambani said.
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