Mumbai: Reliance Industries Ltd (RIL) upstream business will drain cash from the rest of the business from fiscal 2018 until production begins from the three gas fields where RIL and BP announced fresh investments, says Moody’s investor service. This implies that the upstream business will drain cash from the rest of the business from fiscal 2018 until production begins from these blocks. While RIL holds a 60% stake in the gas block, BP owns 30%. The field began gas production in April 2009 and was to hit a peak output of 69.43 mmscmd in March 2010. Currently, RIL is only getting $2.5 per million British thermal unit (Btu) for its current gas production from the KG-D6 block.

Source: Mint June 20, 2017 08:03 UTC