Reliance gets conditional nod for KG basin capex

Business

oi-Sunil

By Sunil Fernandes

Published: Wednesday, August 8, 2012, 8:47 [IST]

The Petroleum Ministry has given a conditional approval to $1 billion capital expenditure by Reliance Industries and British Petroleum (BP) on the Krishna Godavari D6 fields. The approval has been which was pending for the past three years.

While the development is positive for Reliance Industries, the company is likely to take a few years before it strikes any oil or gas from the fields. Also, gas pricing more than any other would be an overhang for the stock.

The Reliance Industries share price after being subdued for several months, finally showed some life by surging more than 5% on increasing hopes of increasing gas output from the KG basin.

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