Reliance To Increase Natural Gas Production in KG-D6 gas blocks

Mukesh Ambani led Reliance Industries Limited (RIL)is planning to invest $6.5 billion in its KG-D6 gas fields located on the eastern coast of the country. The company plans to reach the natural gas production level of 60 mmscmd by 2019-20 and become a strong supplier to domestic demand.

RIL had begun the production in its fields in April 2009. “We can attain a production level of 40 to 60 million standard cubic meters per day (mmscmd) by 2019-20 provided we get timely approvals and the right natural gas price,” said B Ganguly, RIL President and Chief Operating Officer (E&P). The increase in output is required to cater to the sprawling domestic demand of natural gas. High demands of petroleum and natural gas have forced the government to import energy from foreign nations.

So, RIL has planned to increase the production capacity of Dhirubhai-1 and Dhirubhai-3 (D1&D3) and MA fields located in KG-D6 blocks. It will invest $3.155 billion in further producing 20 mmscmd of gas from R-Series discoveries in the fields. In addition to this, there are four satellite fields discovered that will produce 10 mmscmd of natural gas. These satellite fields will be receiving an investment of $1.529 billion. To focus on expanding its natural gas and petroleum capacity, RIL will invest $1.2 billion to look out for new energy sources in the KG-D6 blocks.

“First gas from the satellite developments is expected in mid 2017-18,” said Ganguly. A new field, MJ1, has also been discovered beneath D1 & D3 field recently. The details of the production capacity of this new field have not been taken into consideration as of now, as the block is under analysis as of now. Initial reports about MJ1 reveal that it may hold 2-3 trillion cubic feet of reserves that is almost equivalent to the currently operational reserves in D1 & D3 fields.

Apart from new discoveries and expanding the current capacity, RIL will also invest $747 million in augmenting production from D1 & D3 and MA fields by imbibing new technology of booster compressor. In addition to this, $6.151 billion will be spent as operational expenses. Till date, RIL has made total investment of $7.452 billion in development of D1 &D3 and MA fields, $1.261 billion in operational costs and $1.094 billion in exploring for new source of oil and gas in the block.

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Mukesh Ambani tops the List of India Inc’s Most Powerful CEOs

Mukesh Ambani , Chairman and Managing Director of Reliance Industries Limited (RIL) is the mightiest professional CEO in India. In the 13th edition of India Inc’s Most Powerful CEOs led by The Economic Times, Ambani tops the list of 100 CEOs. He has replaced Ratan Tata (now at third position), who held the position for five years. The top list also contains names of Kumar Birla, Azim Premji, Chanda Kochhar, Anand Mahindra and Anil Ambani.

It has been noted that this year, three of the top ten positions are given to professional CEOs. It is known that most of India’s largest businesses are promoter-led; however emergence of professional CEOs on the forefront is a good sign. Professionals now play a wider role even in promoter-led firms. “From the 70s through mid-80s professionals were largely told what to do and they had to deliver, but now they participate much more in risk-taking and contribute to visioning,” said A Vellayan, chairman of Murugappa Group. The list appeared in Economic Times (ET)’s Corporate Dossier. The rankings have measured power on the basis of six parameters: Leadership, strategy & innovation, performance, stature, social contribution and governance. The ET Corporate Dossier Most Powerful CEOs Survey was conducted by IMRB International. Responses from 500 highly ranked executives from India’ largest corporate houses were analyzed.

With RIL waging ahead to make huge investment of Rs 1.5 lakh crore in the next three years, Mukesh Ambani has also greater responsibility to shoulder in the upcoming time. “The combination of vision, discipline and hunger is exceptional at Reliance. It is very rare to see these three combined in a company,” suggests Vallabh Bhansali, Chairman, Enam Securities. He added, “Mukesh’s vision for the world, for the country, his vision about how businesses are growing, is so ambitious.” In the recently held annual general meeting for its shareholders, Mukesh Ambani made it clear that this investment is an expression of the faith of Reliance in India. As a true professional he has also capped his monthly salary at Rs 15 crore since last four years and gives up Rs 24 crore for the betterment of the company. Apart from topping the list of professional CEOs, he is the most highly paid CEO of the country if the total sum of his salary is accounted for. The corporate Dossier also envisioned the future CEO’s for 2030.

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