Reliance Industries finds more oil in Cambay basin

By Reuters Jun 28 2010 , New Delhi

Reliance Industries, controlled by billionaire Mukesh Ambani, has discovered more oil on India's western

coast, raising the potential of exploratory blocks it has been drilling, the company said on Monday.

India's biggest conglomerate whose businesses span petrochemicals, refining, oil and gas exploration and retail said the current flow was at 410 barrels of oil per day (bopd) at the at the Cambay basin block in the western Indian state of Gujarat.

This is the seventh oil discovery by the company in the region. The potential commercial interest of the discovery is being determined through more data and analysis, Reliance said in a statement. The company also said it is continuing further exploratory drilling efforts in the block, and it had informed the Indian government about the latest discovery.

Reliance holds a 100 percent participating interest in the block, and has so far drilled 17 exploratory wells in the block that covers an area of 635 square kilometres. Last year Reliance, controlled by billionaire Mukesh Ambani, started pumping gas from its block in the vast Krishna Godavari (KG) basin off India's east coast, where it made the country's largest gas find.

It has been producing about 60 million standard cubic metres a day (mmscmd) of gas from the block. At peak output of 80 million mmscmd, it could nearly double India's gas output. Reliance also produces oil from its D6 block in the KG basin, and holds a stake in the Panna, Mukta and Tapti oil and gas fields off India's west coast.

The company, which owns the world's largest refining complex in Gujarat, said last week it will invest $1.36 billion in the US shale gas assets of Pioneer Natural Resources, its second such investment in as many months as it builds business beyond the Indian energy sector.

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