The board of Mukesh Ambani's Reliance Industries Ltd (RIL) will consider and likely approve next Tuesday a plan to raise $2.0 billion by way of syndicated loan, fixed or floating rate bonds or foreign currency convertible bonds to invest in oil and gas exploration and production, the company informed the stock exchanges on Wednesday.
The company plans to invest $ 5.2 billion to double the output from its prolific D6 block in the Krishna-Godavari basin to 80 million standard cubic metres per day (mmscmd).
It had earlier proposed an investment of $ 2.47 billion to produce 40 mmscmd for 7.5 years from two of its 34 discovered wells, Dhirubhai 1 and 3 (in the D6 block).
Despite the increase in the rate of production, the first output of gas will be available only by the second half of the 2008-09 financial year, RIL said.
Reliance's deep-water block KG-DWN-98/3 in the Krishna-Godavari basin off the eastern coast in Bay of Bengal was awarded to RIL and Calgary-based Niko Resources in the first round of the New Exploration Licensing Policy (NELP-I).
RIL as the main operator holds 90 per cent of the participating interest and Niko the remaining 10 per cent.
Based on the initial reserve estimates of the block, RIL prepared an initial development plan to develop two discoveries, Dhirubhai I and Dhirubhai 3 in the block.
The initial plan envisaged a production plateau of 40 mmscmd.
The initial development plan was submitted to the Directorate General of Hydrocarbons in May 2004 and approved in November 2004.