Mukesh Ambani-led Reliance Industries Ltd announced on Tuesday 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.
"More than the size, this discovery signifies a large geological play that could result in future discoveries," he said.
The well could open a significant new play and have a material impact on the future exploration potential of the block.
RIL also made discoveries in two wells in the KG-III-6 shallow water 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.
Reliance was also working on the expeditious monetisation of the discoveries made in 2002 in the D6 block in K-G Basin.
"This entails implementing one of the largest deep water gas development projects in the world. It also involves transporation 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," he said.
The pipeline project will be implemented through Reliance Gas Transporation Infrastructure Ltd.
RIL will have control over the pipeline but without any obligation to invest in the equity of RGTIL, Ambani said.
"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.
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group