Reliance Industries, the nation's most valued company in terms of market capitalisation, will invest 2.284 billion dollars to produce crude oil from its eastern offshore KG-D6 block from March 2009.
RIL was previously targeting oil production in February/ March this year but has changed the schedule to keep the third quarter of 2008 deadline for first gas from the predominantly gas rich block, industry sources said.
The oil discovery is estimated to hold 68 million barrels of reserves and initial targeted production will be in the range of 30,000 to 35,000 barrels per day and planned plateau rate of 40,000 barrel per day.
Third party has independently vetted the reserves and there is a further upside potential based on quine marine survey carried out during 2007.
Reliance is separately investing 5.2 billion dollars in developing Dhirubhai-1 and 3, the first two of the 15 gas discoveries in the 7,645-square-kilometre KG-D6 block. Initial output is likely to be 40 million standard cubic meters per day (mmscmd), which will be raised to 60 mmscmd in 2009-10.
Gas production from the block will peak to 80 mmscmd in 2011-12 and remain at that level till 2016-17, after which it will fall to 60 mmscmd in 2017-18 and to 40 mmscmd in 2018-19.
Sources said the capital expenditure for the oil find includes 733 million dollars for acquisition of a Floating Production and Storage Unit (FPSU).
Block KG-DWN-98/3, popularly known as KG-D6, was awarded to Reliance and its 10 per cent Canadian partner Niko Resources in the country's first round of international bidding of oil and gas blocks in 1999.