BP Share Price: New Gas Discovery off India’s East Coast

on Aug 23, 2013
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iNVEZZ.com Friday, August 23rd: British oil and gas major BP (LON:BP) and its exploration partner Reliance Industries Ltd. (RIL) (NSE:RELIANCE), India’s largest private sector company with businesses in the energy and materials value chain, today announced a new gas condensate discovery off the east coast of India, the second such reserve in the Cauvery Basin deepwater block.

The companies said in a joint statement: “Preliminary evaluation of well data and fluid samples indicated presence of gas condensate in the reservoir interval with a gross column of 143 meters. The well reached its total depth in early August and RIL, as operator, has conducted drill stem test to evaluate the potential of the discovery.”

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BP and RIL have notified the government and the Directorate General of Hydrocarbons (DGH) about the discovery named D-56. It is situated 62 kilometres off the coast in the Cauvery Basin and is the second gas discovery in the deepwater block CY-DWN-2001/2, where RIL is the operator with 70-percent equity and BP has a 30-percent share.

Seeking deepwater exploration technology, RIL sold the stake in the Cauvery Basin operation to the British energy giant for $7.2 billion in 2011. The joint venture has said that it plans to spend more than $5 billion on the block’s exploration and development over the next three to five years.
**“The Find is Significant”, Officials Say**
Government and industry sources, quoted by The Economic Times, have revealed that the newly-found reserve is big and has a potential to produce about 15 million standard cubic metres per day (mmscmd), almost the same as the current output of the block’s KG-D6 fields. DGH officials have noted that the estimated production figure was preliminary.

*The Economic Times* quoted a DGH spokesperson as saying: “A final figure will emerge only after appraisal of the discovery. But as per available data, the find is significant compared with the first discovery in the block.”
!m[BP and Reliance Industries Find Big Gas Reserve in Cauvery Basin](/uploads/story/5038/thumbs/pic1_inline.JPG)
**BP Down, RIL Up**

BP shares traded lower at the opening bell in London today, declining by 0.45 percent by 08:20 BST. As of the same time the Reliance Industries share price in Mumbai was 1.87 percent higher. Over the past year, BP’s share price has fallen just over two percent, while RIL’s shares have gained about three percent.
**As of 08:23 BST buy BP shares at £435.40p.**
**As of 08:23 BST sell BP shares at £435.05p.**
**As of 13:41 BST buy Reliance Industries shares at Rs826.70.**
**As of 13:41 BST sell Reliance Industries shares at Rs816.60.**

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