Ambani meets Pandey; discusses KG basin among others

New Delhi, Sep 29 (PTI) Within days of beginning oil
production from the nation's first deep-sea field, Reliance
Industries Limited (R.I.L.) Chairman Mukesh Ambani Monday came
knocking on the doors of top Government officials to explain
his firm's plans and raise industry issues.

Ambani was to brief Petroleum Minister Murli Deora first
but had to go to Oil Secretary R S Pandey instead as the
minister's flight from Mumbai got delayed. Ambani, flanked by
his oil-man P M S Prasad, then called on S Sundaresan,
Additional Secretary in the ministry.

While Ambani was tight-lipped about his meetings, Pandey
said "this (was) a courtesy call."

"This is my private visit. Please appreciate my privacy,"
Ambani told waiting journalists.

Pandey, however, said Ambani talked about production from
Reliance's eastern offshore Krishna Godavari basin D6 block,
the company's upcoming only-for-exports refinery at Jamnagar
in Gujarat and "general issues relating to the industry."

R.I.L. had on September 17 begin oil production from D6.

"I did not know (previously) what is he is coming for...
since he was meeting me for the first time, this (was) a
courtesy call," he said.

Ambani, according to Pandey, informed that gas production
from D6 would begin by end December or early January. Peak
output from D6 is envisaged at 80 million standard cubic
meters per day, almost doubling domestic gas output.

The 580,000 barrels per day refinery being set up by
Reliance Petroleum, a unit of R.I.L., will commence operations
before the year end, Pandey said Ambani had told him.

Pandey said the legal dispute between R.I.L. and Anil
Ambani's Reliance Natural Resources (R.N.R.), where the
Government had sought to implead itself, was not discussed.
"We did not discuss about this case. He did not talk about
this."

Pandey said Mukesh Ambani explained about the company's
plans for D6, but refused to specify the details.

Prasad had earlier this month stated that D6 will pump 89
mmscmd of gas by 2010 to almost double availability of gas in
the country.

Initial gas production from Dhirubhai-1 and 3 fields, the
first two of the 18 discoveries in Block KG-DWN-98/3 or D6 off
the Andhra coast that the company is putting to production,
will be 15-20 mms.cmd.

"From these two fields, gas production will reach 80
mmscmd in next 6-8 quarters," he had said. Another 9 mmscmd
gas would be produced from the MA oil field in the same block.

Reliance is investing USD 5.2 billion in developing
Dhirubhai-1 and 3 discoveries that will produce 40 mmscmd by
mid-2009.

The firm has submitted development plan for eight other
fields adjoining Dhirubhai-1 and 3, to the oil regulator for
approval. The fields would produce an additional 25 mmscmd.

Reliance earlier this month started producing oil from
the MA field and output is expected to reach 20,000 barrels
per day in one month from current 5,500 bpd. Gas flowing along
with the oil is currently being re-injected into the wells and
this gas would flow together with Dhirubhai-1 and 3 gas.

Peak oil output of 40,000 bpd from MA would be achieved
in 6-8 quarters, Prasad had stated then.