Reliance Industries Ltd will invest $8.84 billion in producing 80 million standard cubic meters per day (mmscmd) of gas from its KG-D6 block in Krishna Godavari basin, Minister of State for Petroleum and Natural Gas, Dinsha Patel said on Tuesday.
"The consortium of RIL and Niko Resources has submitted addendum to the development plan, which envisages increase in production from 40 to 80 mmscmd and increase in capital expenditure from $2.47 billion to $8.84 billion," he said in a written reply to a question in Rajya Sabha.
As per the original development plan, commercial production of gas at the rate of 40 mmscmd from KG-D6 was scheduled to begin from June 2008 with a capital expenditure of $2.47 billion.
Reliance has so far made 13 finds in the deep sea block KG-DWN-98/3 (also known as KG-D6), but only the first four - Dhirubhai 1, 2, 3 and 6 - have been declared commercial.
Only Dhirubhai 1 and 3 are being developed in the first phase. First gas will now land in July 2008 at a gas processing facility near Kakinada through a 35-km, 24-inch pipeline.
Reliance holds 90 per cent interest in Block D6 where it estimates reserves in excess of 50 trillion cubic feet. Niko Resources of Canada has the remaining 10 per cent.
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