RELIANCE INDUSTRIES LTD. DEEP WATER OIL AND GAS EXPLORATION TO

PRODUCTION KG-D6

Context:• Demand for

gas in India will surge at 9-10% annually.• India pays a

premium of ~75 $ per barrel oil equivalent for LNG. NAPHTA is 445 $ per tonne.

 Innovation: India’s first deep water, oil and gas exploration and production:

• Biggest discovery of natural gas in 2002, globally.

• Completed in 6.5 years time against global average 8 -10 years.

• At a depth of 2 km below the seabed. No one had gone below 90 mts. in India.

• Discovery and development cost was ~30% lower than global average.

• 24.2$ per barrel oil equivalent of gas

Reliance Industries Ltd.: KG-D6

KG-D6 Block - Overview Challenges:• No deep water oil and gas exploration in India. • Absence of deepwater technology knowhow, vendors, contractors, skilled labour, in India.• 4 months good weather:• hostile ocean conditions – strong winds, swells, currents, cyclones• scorching conditions 50 degrees C in summer • heavy rains: double monsoon cycle.

Reliance Industries Ltd.: KG-D6

Project Vision StatementThe KG-D6 Project will ‘for sure’ set the benchmark for deepwater field development!

Safety, Speed & Success Upgradable ReliableEnvironmentally Responsible

RELIANCE INDUSTRIES LTD.: KG-D6

Conventional: Single Turnkey Provider: Long waitlistsGlobal span of execution, 24 X 7 round the clock: Over 200 best in class consultants

& service providers engaged in over 20 locations worldwide

Reliance Industries Ltd.: KG-D6

• Soil erosion effecting stability of equipment at the sea bed. • Corrosion of equipment • Current loads impacting equipment at sea bed.• Flow assurance of fluids: conversion into crystalline solids called hydrates.

Reliance Industries Ltd.: KG-D6

Extreme Engineering

• 125,000 MT Subsea Equipment• 500 line km of pipelines & Umbilicals• >200 subsea connections• >80 installation Vessels & Barges

Reliance Industries Ltd.: KG-D6

Reliance Industries Ltd.: KG-D6

Addition of

550,000

barrels of oil

equivalent

per day, i. e.

40 % of India’s

current oil

and gas

production.Publication: Financial Express, Edition: Mumbai, Reporter: Sanjay Jog, Published.: 12 Jul 2009,

1. The production of about 76 lakh tonnes of urea per year results in savings for the government of about Rs. 4000 crore per annum, an equivalent of 18% cost reduction!

2. Substantial increase in government's revenue as a result of KG-D6 profit, petroleum royalty and tax. The potential savings to the economy of Rs.50,000 crore on energy imports will be about 20% of the current net oil import bill.

3. The estimated 3rd quarter (2009-10) contribution to India’s GDP is almost 0.35%.

4. Natural gas is also a cleaner fuel. Clean gas from KG-D6 can have an overall impact of lowering carbon emissions and building a greener footprint by 35%.

Congratulations Reliance Industries!