Reliance Industries amps up shale gas production process

Mukesh Ambani led Reliance Industries Limited (RIL) is all set to boost its shale gas ventures with three US energy majors, in an effort to augment production and process. Reliance Industries has already invested close to $ 400 million in its shale gas joint venture projects in the US, during the April-June financial quarter, which was the best ever financial quarter for Reliance in the last three years,

RIL has encountered the highest ever financial performance results for the quarter ending June 30th where earnings from its refining business helped RIL assume a 16.7% rise in net profits.

Reliance Industries has inked joint ventures with US based Chevron (RIL- Chevron), Carrizo (RIL- Carrizo) and Pioneer (RIL-Pioneer). Accelerated drilling and development activities, including two additional rigs were mobilized and 20 additional wells were drilled during the last quarter. 18 wells have already begun production during the quarter that ended on June 30th.

Individually, RIL-Pioneer JV is producing 165 million standard cubic ft per day (mscfd) of shale gas and 13,800 barrels per day of condensate. Production ramp-up is set to run as per plan, and the JV will likely focus on drilling in the liquid-rich areas of Eagle Ford in South Texas, US. The RIL-Chevron JV drilled nine additional wells during the quarter, with production rate from its 22 producing wells leveling at 51 mscfd during the quarter. RIL’s JV with Carrizo accounted for drilling of eight new wells during the quarter, taking total count of drilled wells to ten. RIL-Carrizo is will commence production in the newly drilled wells in the second half of the 2011-12 fiscal. The drilling was largely facilitated by additional capital expenditure and production level has been augmented to run at doubled rate by next fiscal year.

Acquisition of shale gas assets has been a significant venture for RIL this fiscal year, and it hopes to bank on the same by next year through gradual augmentation of production process.

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