Reliance's US Shale Business Overtake Indian Oil, Gas Operations

Indian private firm Reliance Industries’ US shale gas business has overtaken its domestic oil and gas operations, a report by Financial Chronicle newspaper says.

The company expects the trend to continue due to better margins and higher demand.

RIL said usage of shale gas and oil in power generation in US is rising and has overtaken the use of conventional oil and gas, which will create more demand.

RIL’s chief financial officer Alok Agarwal said exports of condensates have also been gaining currency, reports Financial Chronicle. “Even RIL would take up these exports from its Pioneer joint venture, which is producing 676 million metric cubic feet of oil equivalent per day (Mmcfe/day), including around 64,500 barrels per day of condensate.” 

Reliance’s share from its three joint ventures in the US stood at 41.4 billion cubic feet equivalent (BCFe), up 28 per cent year-on-year and 10 per cent sequentially, says the newspaper.

The gross joint venture production is now averaging above one billion cubic feet equivalent per day (Bcfe/day) and RIL’s share of production was 48.6 Bcfe in first quarter of the fiscal year.