Reliance, valued at $54 billion, should show significant growth in coming quarters from gas sales it started pumping this month from its deep-sea field off India's east coast.By the year-end gas output from the Krishna-Godavari Basin is expected to reach a peak production of 80 million standard cubic metres a day -- a level the upstream regulator has said can be sustained for six years.
"The major value driver going ahead for Reliance is the E&P (exploration and production) business," said Deepak Pareek, an analyst at Angel Broking, adding the gas sales from the
"They have started exploration in prospective blocks recently. So, any new discoveries could lead to reserve accretion and in turn boost the valuation of the company," he said.
Reliance will also benefit from a new 580,000 barrels per day (bpd) refinery, built by unit Reliance Petroleum, which was commissioned last December. The company is in the process of absorbing the subsidiary, in which it owns 70 percent.
No comments:
Post a Comment