RIL gets a nod for Rs 800 Cr drilling project

Reliance Industries received a go ahead for drilling 8 additional exploratory wells which will ascertain the reservoir capacity and commercial viability of hydrocarbons off the coast of Tamil Nadu. The project cost will be Rs 800 crore.

Under the new exploration licensing policy -III, RIL has been awarded exploratory rights for hydrocarbons prospecting in the offshore block DY-III-D5. RIL has already obtained the environmental clearance to drill 11 exploratory wells in the said block . 

As of now, RIL has been successful in discovering hydrocarbons in 3 wells out of 9 wells. Encouraged by the seismic data suggesting presence of hydrocarbons in the block, RIL will be planning to carry out 8 additional exploratory well drillings, according to media reports. 

RIL while partnering with British Gas has forayed into the exploration and production business. 

RIL traded in green throughout the day . The stock made an intra-day high at Rs 993.60  and managed to close at Rs 986.65 per share, thus closing  up by almost 1.34 per cent or Rs 13 per share. The one year return for the stock has been negative 1.9 per cent; whereas the stock has been up by almost 3.5 per cent on a one month basis. The stock is trading above its 200 days simple moving average (200-D SMA) indicating bullishness in the scrip.