RIL inches ahead
Index heavyweight Reliance Industries added 0.3% to Rs 1,268.60 extending its recent upmove.
But the stock pared gains after it had risen as much as 1.1% to a high of Rs 1,279 at the onset of the trading session. Today’s high of Rs 1,279 is a new all time high for the scrip. 4.05 lakh shares changed hands in the counter on BSE.
The stock had surged 3% on Wednesday (1 November) after it doubled its natural gas output estimate from deep-sea fields to 80 million cubic metres a day. Earlier, after a 1.5% fall on 26 October 2006 to Rs 1,175.20 the scrip had bounced back the next day (27 October) after the company said it is operating its Jamnagar refinery at full capacity despite a fire that took place at desulphurisation unit at the refinery on 25 October. It surged 4% on 27 October to Rs 1222.85. The scrip edged up to Rs 1232.75 on 30 October. It eased a bit to Rs 1226.20 on 31 October.
RIL has played a key role in Sensex’s surge over the past few days, it being a heavyweight in the barometer index. RIL has a huge 11.6% weightage in Sensex. From 12,698.41 on 26 October, the barometer index has gained 369.43 points or 2.9% in the past 5 trading sessions to current 13,067.84.
RIL will invest $5.2-billion to double the output from its D6 block in Krishna Godavari basin to 80 million standard cubic meters per day (mmscmd). RIL had earlier proposed investment of $2.47 billion to produce 40 mmscmd for 7.5 years from discoveries - Dhirubhai 1 and 3 (in the D6 block) - out of total 34 wells. The company has made a dozen discoveries from the 15 wells drilled in the deep-sea but only the first four discoveries - Dhirubhai 1, 2, 3 and 6 - have been declared commercial. Reliance holds 90 per cent interest in Block D6 where it estimates reserves in excess of 14.5 trillion cubic feet. Niko Resources of Canada has the remaining 10 per cent.
Last month, RIL discovered natural gas in an exploration block off the east coast. The discovery was made in a shallow water block KG-OSN-2001/1 in the Krishna Godavari basin and has been named as Dhirbhai 28. RIL had made one of the world's largest gas finds in the Krishna Godavari (KG) basin, in 2002.
Recently, Gujarat State Petronet (GSPL), the gas distribution subsidiary of Gujarat State Petroleum Corporation (GSPC), signed an agreement with RIL to transport natural gas to Gujarat that RIL plans to produce from the Krishna-Godavari basin.Reliance has already begun work on laying pipelines from the Krishna-Godavari basin to Gujarat. RIL has begun working on 48 inch - 1,400 km East West Pipeline (EWP) across Andhra Pradesh, Karnataka, Maharashtra and Gujarat to provide access to potential gas markets in its corridor.
Analysts feel that RIL's oil exploration and processing business will emerge as a major earnings contributor over the years which in turn will enable RIL to de-risk its earnings from an adverse refining/petrochemicals cycle.
But the stock pared gains after it had risen as much as 1.1% to a high of Rs 1,279 at the onset of the trading session. Today’s high of Rs 1,279 is a new all time high for the scrip. 4.05 lakh shares changed hands in the counter on BSE.
The stock had surged 3% on Wednesday (1 November) after it doubled its natural gas output estimate from deep-sea fields to 80 million cubic metres a day. Earlier, after a 1.5% fall on 26 October 2006 to Rs 1,175.20 the scrip had bounced back the next day (27 October) after the company said it is operating its Jamnagar refinery at full capacity despite a fire that took place at desulphurisation unit at the refinery on 25 October. It surged 4% on 27 October to Rs 1222.85. The scrip edged up to Rs 1232.75 on 30 October. It eased a bit to Rs 1226.20 on 31 October.
RIL has played a key role in Sensex’s surge over the past few days, it being a heavyweight in the barometer index. RIL has a huge 11.6% weightage in Sensex. From 12,698.41 on 26 October, the barometer index has gained 369.43 points or 2.9% in the past 5 trading sessions to current 13,067.84.
RIL will invest $5.2-billion to double the output from its D6 block in Krishna Godavari basin to 80 million standard cubic meters per day (mmscmd). RIL had earlier proposed investment of $2.47 billion to produce 40 mmscmd for 7.5 years from discoveries - Dhirubhai 1 and 3 (in the D6 block) - out of total 34 wells. The company has made a dozen discoveries from the 15 wells drilled in the deep-sea but only the first four discoveries - Dhirubhai 1, 2, 3 and 6 - have been declared commercial. Reliance holds 90 per cent interest in Block D6 where it estimates reserves in excess of 14.5 trillion cubic feet. Niko Resources of Canada has the remaining 10 per cent.
Last month, RIL discovered natural gas in an exploration block off the east coast. The discovery was made in a shallow water block KG-OSN-2001/1 in the Krishna Godavari basin and has been named as Dhirbhai 28. RIL had made one of the world's largest gas finds in the Krishna Godavari (KG) basin, in 2002.
Recently, Gujarat State Petronet (GSPL), the gas distribution subsidiary of Gujarat State Petroleum Corporation (GSPC), signed an agreement with RIL to transport natural gas to Gujarat that RIL plans to produce from the Krishna-Godavari basin.Reliance has already begun work on laying pipelines from the Krishna-Godavari basin to Gujarat. RIL has begun working on 48 inch - 1,400 km East West Pipeline (EWP) across Andhra Pradesh, Karnataka, Maharashtra and Gujarat to provide access to potential gas markets in its corridor.
Analysts feel that RIL's oil exploration and processing business will emerge as a major earnings contributor over the years which in turn will enable RIL to de-risk its earnings from an adverse refining/petrochemicals cycle.
posted by SY at 5:37 PM
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