Reliance Group
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. Group's annual revenues are in excess of US$ 25 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500 company and is the largest private sector company in India.
Backward vertical integration has been the cornerstone of the evolution and growth of Reliance. Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil and gas exploration and production - to be fully integrated along the materials and energy value chain.
The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail.
Reliance enjoys global leadership in its businesses, being the largest polyester yarn and fibre producer in the world and among the top five to ten producers in the world in major petrochemical products.
The Group exports products in excess of US$ 15 billion to more than 100 countries in the world. There are more than 25,000 employees on the rolls of Group Companies. Major Group Companies are Reliance Industries Limited (including main subsidiaries Reliance Petroleum Limited and Reliance Retail Limited), Indian Petrochemicals Corporation Limited and Reliance Industrial Infrastructure Limited.


Growth through Energy Security for India
India imports about two-thirds of its crude oil requirement. Exploration and production of oil and gas is critical for India's energy security and economic growth. Reliance's oil and gas exploration and production business is therefore inexorably linked with the national imperative. Exploration and production, the initial link in the energy and materials value chain, remains a major growth area and Reliance envisions evolving as a global energy major.
Over the years the E&P industry has registered significant growth, primarily due to spiraling crude oil and gas prices. With growing competition and ever growing demand for energy, especially from developing countries, the focus is on energy security. India's share is a meagre 0.5 % of global oil reserves of 1,189 billion bbl, while it consumes 3.2 % of global oil consumption every year.
The growing demand for crude oil and gas in the country and policy initiative of Government of India towards increased E&P activity, have given a great impetus to the Indian E&P industry raising hopes of increased exploration.
Under the New Exploration Licensing Policy (NELP) of Government of India, blocks have been acquired by various E&P companies for exploration. The efforts have resulted in a number of oil and gas discoveries in India and have changed the perception and prospects of the Indian sedimentary basins and the focus on Indian E&P Industry.
RIL is the largest Oil & Gas acreage holder among the Private sector companies in India with 34 domestic exploration blocks covering an area of about 331,000 sq. km. This is in addition to its interest in one exploration block each in Yemen and Oman RIL also has 5 coal bed methane (CBM) blocks covering an area of about 4,000 sq. km.
RIL is India's first private sector company in the Exploration and Production (E&P) sector to have discovered large gas reserves. The E&P strategy of RIL is aimed at further enhancing the level of vertical integration in its energy business, and realising value across the entire energy chain, while fulfilling important national priorities.
In the years to come, RIL is well positioned to be amongst the largest value creators in the upstream oil and gas sector. RIL's portfolio of E&P assets, gives it the potential to create value across entire value chain from wellhead to burner tip. Accretion of new reserves through exploration, development of existing oil and gas reserves and development of related downstream infrastructure facilities would result in significant value creation for RIL in future. RIL has achieved a high success rate of 74 % in terms of discoveries made from the wells drilled thus far, excluding wells under evaluation.
Panna Mukta Tapti (PMT) Blocks:
RIL holds a 30 % interest in an unincorporated Joint Venture with British Gas and ONGC, to develop the proven Panna-Mukta and Tapti oil and gas fields. British Gas and ONGC have a 30 % and 40 % share in the fields respectively. The PMT JV commenced direct marketing of gas from April 1, 2005. The JV is supplying gas to consumers like Gujarat State Petroleum Corporation, Indian Petrochemicals Corporation Limited, Gujarat Gas Company Limited, Gas Authority of India Limited etc. The Panna-Mukta fields produced 1.57 Million MT of crude oil and 46.70 billion cubic feet of gas during the year compared to 1.32 Million MT of crude oil and 47.15 billion cubic feet of gas produced during the previous year. The Tapti field produced around 78.99 billion cubic feet of gas during the year compared to 74.79 billion cubit feet of gas produced during the previous year. The PMT JV is in a rapid phase of development and is implementing expanded plan of development (EPOD) of Panna Mukta field and new revised plan of development (NRPOD) for Tapti. EPOD is likely to result in additional recovery of oil and gas of 4.1 Million MT and 237 billion cubic feet from December 2006. The plan for expanded development of Tapti field would result in additional gas of 210 MMSCFD from 2007.
NELP and Pre-NELP Blocks:
12 exploration blocks were awarded under the 1st round of the NELP, 4 exploration blocks in the 2nd round, 9 blocks in the 3rd round and one block in the 4th round of NELP. RIL has been awarded 5 more exploration blocks in the financial year ended March 31, 2006, in the 5th round of NELP. The Production Sharing Contract has been signed and petroleum exploration license for four blocks awarded during the year has already been obtained. RIL and various partners, including ONGC Ltd. and Oil India Ltd., were awarded two exploration blocks prior to NELP. The Company has also acquired the operating rights of four exploration blocks from Tullow Oil plc, a UK Company. During the year 2005-06, RIL struck oil in the shallow waters of KG basin in KG-III-6 Block (KG-OSN-2001/2). Currently, commerciality of this discovery is under evaluation. Building on the major Dhirubhai gas discovery, RIL continued exploratory drilling campaign in the KG-DWN-98/3 block. 3 more exploratory wells and 2 development wells were drilled, confirming upside potential of the block and also helped in reducing the reservoir risk. The Development Plan of Dhirubhai 1 and 3 discoveries have already been approved by Government of India and are on track. Based on the upside potential of the block, options of higher plateau production from the fields is being evaluated.
Coal Bed Methane (CBM) Blocks:
The exploration in the CBM block of RIL is also progressing as per plan. Gas In Place (GIP) estimates of 3.65 TCF has been concurred by the Director General of Hydrocarbons (DGH) for Sohagpur East and West Blocks. Plans are being made to produce commercial CBM for the first time in the country by 2009.
Overseas Blocks:
RIL has interests in exploration of overseas blocks, one each in Yemen and Oman. RIL had oil discoveries in the on shore Malik 9 block in Yemen. The development plan for the block has been approved by the Republic of Yemen and test production commenced in December 2005. In the Oman offshore block where RIL is the Operator, the existing seismic data has been collected and 2D reprocessing of data is underway. RIL has also signed a Technical Evaluation Agreement with ANH (Columbia's hydrocarbon regulator) and also entered into a co-operation agreement with Ecopetrol (National Oil Company of Columbia) for farm-in opportunities in that country.


Reliance is unequivocally committed to all its stakeholders - employees, customers, shareholders, investors, vendors and policy planners. At Reliance, every team member is encouraged to ensure that stakeholders' interests are uppermost.