RIL Polyester Intermediates production grows by 3%

24 Jul '08

6 min read

OIL AND GAS (EXPLORATION & PRODUCTION) BUSINESS

• There were 2 gas discoveries as follows:
o Discovery B1 in Block KG – VD3
o One more discovery (Discovery 42) in the KG - D6 Block
• The development plan for the MA oil field in KG – D6 was approved by the Government

• A well drilled in the block KG-D6 has resulted in a discovery (Dhirubhai 42) for the first time in the Pleistocene submarine channel complex play which has a significant area extent in the block particularly in the northern and eastern parts of the block. The discovery was notified to the Government in July'08. RIL has filed an appraisal program for the discovery to evaluate size of the discovery.

• The progress has been made in the development of D1 & D3 and MA fields, in the KG-D6 block, as per management expectations. The progress was made despite adverse weather conditions, complex logistics, tight supply chain market and global shortage of manpower.

• RIL operates with 6 rigs deployed for both development and exploration activities. Further RIL plans to mobilize 6 additional rigs of which 2 are expected to be in Indian waters by the year end.

INTERNATIONAL OIL AND GAS (EXPLORATION & PRODUCTION) BUSINESS:

• Reliance expanded its International footprint in Exploration and Production:
o Executed two Production Sharing Contracts in Kurdistan (Iraq)
o Acquired acreage in Peru by farming in three on-land blocks, including a block in which Reliance is the operator.
o Reliance farmed out 25% participating interest in block K located in East Timor to Oil India Limited and Indian Oil Corporation.

• The International business comprises of 11 blocks with acreage of about 80,000 square kilometers – 3 in Yemen (1 producing and 2 exploratory), 2 each in Oman, Kurdistan and Colombia, 1 each in East Timor and Australia. The average production at the Yemen Block 9 was 5,000 BOPD.

REFINING & MARKETING BUSINESS:
As an international refiner, RIL's refining margins were influenced by the divergent margin scenario witnessed by the industry globally. RIL managed to sustain its margins primarily on the back of efficient sourcing of crude oil, ability to produce globally accepted products and flexibility in its crude bucket, product slate and evacuation infrastructure.

PETROCHEMICALS BUSINESS:
The polymer business witnessed sustained production growth with volumes of PP, PE and PVC remained stable at 831 KT. RIL produced 458 KT of ethylene, an increase of 2% and production of 181 KT of propylene which remained flat over the corresponding period of the previous year. Polyester production volume (PFY, PSF and PET) increased by 5% to 410 KT. RIL has maintained its focus on specialty products which account for 53% and 42% of PSF and PFY production respectively. RIL's polyester intermediates (PX, PTA and MEG) production grew by 3% to 1,184 KT during the period under review.

RELIANCE PETROLEUM LIMITED (RPL):
Reliance Petroleum Limited (“RPL”) achieved 94% overall progress in implementation of its complex refinery. RPL has mobilised sufficient resources and expects to complete the refinery ahead of its initial schedule of December 2008.

RELIANCE RETAIL LIMITED (RRL):
Reliance Retail today operates over 735 stores in 70 cities, spanning 13 states, with over 3.5 million square feet of trading space through 12 distinct store formats. During the quarter, Reliance Retail has entered into joint venture with Office Depot for office solution products.

Reliance Industries Limited

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