After a lull of six years, Mukesh Ambani Chairman of Reliance Industries and Bob Dudley CEO of BP Plc announced an investment of Rs 40,000 crore ($6 billion) in the controversial KG-D6 block.
Ambanis and Dudleys separate meetings with Narendra Modi (PM of India) and Petroleum Minister Dharmendra Pradhan, disclose their plans for exploration and production to retailing of petroleum products, and from natural gas and LNG imports to green energy.
Bob Dudley told reporters, BP-Reliance have agreed to award contracts to progress the development of the R-series for the ultra-deepwater gas field in block KG-D6 off the East coast of India in an integrated way, producing approximately three trillion cubic feet of discovered gas reserves.
By 2020-2022, this investment expects to bring 30-35 million standard cubic meters of gas per day (mmscmd) of new domestic gas production.
We plan to submit field development plans for the next two projects, the satellites under D-55, for government approval, before the end of 2017, Dudley said.
These types of projects take a time to deliver positive RoE. We may see a negative opening of share on Friday. However, the stock can touch Rs 1,800 in the next 18 months as per the statement from AK Prabhakar, Head of Research, IDBI Capital.