DGH gives RIL go ahead to drill 8 more wells

Directorate General of Hydrocarbons (DGH), which regulates the upstream companies, has given the go ahead signal to Reliance Industries Limited to drill 8 more wells. The total capital expenditure is estimated as USD 1.5 billion for the same. The DGH has also projected the reserves as 617 bcf and set 2016 as the deadline for starting of the gas production.

This is definitely a good news for RIL which is struggling to increase the continuously falling gas production as KG-D6. DGH has also suggested some new measures which will make gas production more economically viable for RIL with the projected revenue approximately at USD 2.3 billion.