Shale gas to strengthen RIL's E&P portfolio: Mukesh Ambani

Moneycontrol Bureau

At a time when  Reliance Industries is grappling with regulatory concerns and falling KG-DG output, prospect for the firm's shale gas acreages in US are bright, stated Mukesh Ambani, chairman and CEO, RIL in the firm's 39th annual general meeting.
The firm's share of natural gas output from its US shale gas operations has reached over 11 million standard cubic metres per day against its share of output of just below 15 mmscmd it is currently seeing from the Krishna (KG D6 fields.
The energy giant expects shale gas to account for over a third of production in FY14, said Ambani while addressing shareholder during the AGM.
RIL through its subsidiaries has 3 separate joint ventures in the US for shale gas business and has uptill now spent USD 6 billion in these ventures.
The company’s international shale gas operations have significantly contributed to FY13 results and are likely to add sustainable revenues going ahead as well.
Also, the shale gas operations reached record revenues and operating profit of USD 616 million and USD 483 million in FY13
Analysts expects RIL's US shale assets to become more meaningful over the medium term as production ramps up and Ebidta from shale joint ventures grow. Brokerages also see EBITDA rising significantly from current 6 percent as company's shale operations are entering a positive territory.
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