By Pravin PrashantGas, July 31, 2020

Reliance Oil & Gas business 1Q FY21 revenue down by 45.2%

Decline due to lower production in domestic business post closure of Panna Mukta and D1D3 fields and lower prices.

Reliance Oil & Gas (Exploration & Production) revenues for 1Q FY21 declined by 45.2% Y-o-Y to Rs. 506 crore primarily due to lower production in domestic business post closure of Panna Mukta and D1D3 fields and lower prices.
Segment EBITDA for the quarter turned negative at Rs. 32 crore with lower volumes and weak realizations.
Prior to Covid-19 outbreak, the KGD6-R Cluster project was on track for commissioning by mid-2020. Drilling and subsea installation work for all wells have been completed. Offshore works on platform and pre-commissioning require mobilization of critical resources of OEM contractors from global locations pending due to Covid-19 restrictions.
CBM gas production remained stable at 0.95 MMSCMD, with ongoing focus on sustaining and augmenting production. Covid-19 pandemic resulted in sharp fall in US Shale commodity prices globally. Reliance and its JV partners are curtailing development activity and focusing on production.
For Jan ’2020 - Mar ’2020 period, the overall production was 10% higher from the previous quarter at 26.3 bcfe and price realization was at $ 2.39/Mcfe. For Apr ’2020- Jun ’2020 period, the overall price realization was at $1.59/Mcfe Production declined by around 4% from previous quarter levels as fewer new wells came online partially offsetting the natural decline.

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