RIL slides 4 % on lower KG basin production estimates

18 Mar 2011

The shares of Reliance Industries were down Rs40 or 4 per cent at Rs990 on today after the petroleum major told the oil regulator that gas production from its KG Basin block could be lower than earlier estimates, a report on indianpetro.com said.

The website provides news, information and market intelligence in the Indian oil & gas, power and fertiliser space.

Reliance was responding to the points raised by the regulator regarding the expansion of production capacity and operational efficiency at the KG Basin block.

''Commenting on gas sales projections for the D1 and D3 fields in the block, the operator said that given the provisional budgetary allocations, gas sales from these fields may be as low as 38 mmscmd during the 2012-13 fiscal year.

This is even further below the current rate of sales which has dropped to around 43-44 mmscmd from these fields,'' the web site reported.

The announcement has however caused confusion among investors tracking the stock.