It is aimed at reversing the trend of falling gas and crude oil output
Reliance Industries Ltd. (RIL) is planning to invest over $5 billion in the KG-D6 block to reverse the trend of falling gas and crude oil output. The company has made reference to this in its annual report released on Thursday.
“The KG-D6 fields produced 336 BCF of natural gas and 3.31 MMBBL of crude oil and condensate in 2012-13, reduction of 41 per cent in case of liquid portion and 39 per cent in case of natural gas on a year-on-year basis. The average production during the year was at 26 MMSCMD of natural gas and 9,225 BOPD of crude oil. …The next wave of projects in KG-D6 block are envisaged to be undertaken over the next three-to-five years, and entail a potential total investment in excess of $ 5 billion to develop around 4 trillion cubic feet (TCF) of discovered natural gas resources,” the company said.
Meanwhile, as part of a HR initiative , RIL has introduced a new business transformation project called Smart Transformation at Reliance (Star).
Starting this financial year, Star will help RIL streamline and align its various businesses, which have been working in isolation. It will cover three businesses—exploration and production, refining and marketing, and petrochemicals. It will also cover support functions such as manufacturing, projects and logistics. “The rationale behind STAR is to enable the institutionalisation of RIL’s DNA,” the annual report said.
“RIL's powerful project management skills will allow the company to retain its competitive advantage. The company has completed basic and detailed design,” it said. “The company’s new business architecture framework has been developed and the new organisation structure is also ready to be implemented," it added.
A team of around 1400, inclusive of RIL employees and external consultants, has been working on this initiative to make it successful. Meanwhile, the character of RIL’s Haryana SEZ Ltd. has been changed into an economic township project.