Reliance Industries Ltd.

Reliance Industries and Cairn India are waiting for Cabinet’s decision on their proposal to drill exploration wells in already producing oil and gas fields. Oil Ministry is likely to ask Cabinet for decision on these proposals of both the companies. On the flagging D1&D3 gas fields in the KG-D6 block, Reliance has proposed to drill an exploration well in order to study reservoir characteristic, while Cairn proposed to drill new probes to increase output from the Rajasthan block to 300,000 barrels per day from 175,000 bpd.

Few years back, Directorate General of Hydrocarbons (DGH), the ministry's technical advisory arm took a decision that exploration is not permitted within an area that has been delineated after discoveries for production of hydrocarbons. But now, the ministry wishes to frame a policy for allowing exploration in a development area and will put it up to the Cabinet Committee on Economic Affairs for approval.