Reliance Industries Ltd.

In a big jolt to the Mukesh Ambani firm, Reliance Industries (RIL), Canadian oil and gas producer Niko Resources has reported that total proved plus probable natural gas reserves at the company’s KG D6 block in India have slumped by almost 51% to 377 billion cubic feet equivalent (bcfe), as mentioned in some media reports.

The D6 block contributed 79% to Niko's total production last year. Natural gas production at the block has been declining as fewer wells were drilled than planned and some wells ceased to produce due to the entry of sand or water. Niko has a 10% stake in the D6 block, which is estimated to hold more than 9 trillion cubic feet (tcf) of gas.

Earlier in May, it was reported that billionaire Mukesh Ambani owned company would submit a new plan that envisages an integrated development approach for the entire problematic D-6 block. The new development plan, which is expected to be ready by the last quarter of this fiscal, would take at least two years to arrest the ever dwindling gas production of D-6 block, after the plan gets mandated regulatory approval.