RIL To Award R-series Contracts In September Quarter

RIL To Award R-series Contracts In September Quarter

Mukesh Ambani led Reliance Industries is expected to award contracts related to its planned Rs 40,000 crore investment in the KG-D6 basin by the end of the September quarter, the company told analysts.

“R-Series contracts to be awarded by end of September quarter or early December quarter in the current financial year. It would start production from 2020 with plateau production to be Rs 12mmscmd,” Sudeep Anand, analyst with IDBI Capital wrote in a 23rd July dated report. In June, RIL announced it will invest Rs.40,000 crore in the KG-D6 Basin along with partner BP Plc. The report also added pricing for new fields to be determined by market forces.

In its analyst meet held on Friday to discuss the company’s June quarter financial results, also informed analysts, its share in the retail market fell marginally. “1253 outlets operational and plans to add 2000 new outlets in 2-3 years, where targeting coastal regions and hiring private terminals. Marginally loses market share from 5% to 4.4% due to discontinuation of discounts,” analysts with Elara Capital wrote in a 23rd July dated report. RIL had seen an increase in its market share in the fuel retail market in the last quarter owing to aggressive discounts offered beyond the prevailing fuel price in the market.

For its coal bed methane (CBM) segment, the company informed analysts, “CBM production started with current production of 0.42mmscmd which would ramp up gradually. Currently, entire production is consumed internally with a price of US$4.23/mmbtu which would be increased to US$4.5/mmbtu in the September quarter,” the IDBI Capital report said.

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Analysts also added, RIL’s new offering on feature phones to be sold for a security deposit of Rs 1,500 may come with certain terms and conditions. ” The management also answered queries on the planned Jio phones, the offer of Rs 1,500 security deposit return after three years may come with riders related to plans subscribed to in the three year period,” said another analyst with a domestic brokerage firm who did not wish to be identified.

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