Reliance Annual Report 2021-22: Oil and Gas Exploration and

Production

Introduction:
Reliance Industries Limited, one of India's largest conglomerates, released its annual report for the fiscal
year 2021-22, providing comprehensive insights into its various business segments. In this report, we will
focus on Reliance's Oil and Gas Exploration and Production (E&P) division, highlighting key
developments, achievements, and financial performance during the year.

Exploration and Production Operations:

Reliance's E&P division plays a crucial role in the company's energy portfolio. It encompasses upstream
activities, including exploration, development, and production of oil and gas reserves. The division
operates a diverse portfolio of assets globally, with a strong focus on India.

Key Developments and Achievements:

1. KG-D6 Block: Reliance made significant progress in the KG-D6 Block, located in the Krishna-Godavari
Basin off the eastern coast of India. The company successfully commissioned the R Cluster ultra-
deepwater gas field, which began production in December 2020. The project involved deploying state-of-
the-art facilities and drilling multiple wells at water depths of up to 2,100 meters. The R Cluster project is
expected to contribute significantly to India's energy security by supplying natural gas for domestic
consumption and reducing dependence on imports.

2. Satellite Cluster: In addition to the R Cluster, Reliance achieved the first gas production from the
Satellite Cluster project in April 2021. This project utilizes existing infrastructure and enhances the overall
output from the KG-D6 Block. The development of the Satellite Cluster involved drilling four wells and
connecting them to the existing production facilities. The successful commencement of production from
the Satellite Cluster further strengthens Reliance's position as a key player in India's oil and gas industry.

3. Joint Ventures: Reliance continued to strengthen its strategic partnerships in the E&P sector. The
company formed a 51:49 joint venture with British Petroleum (BP) for the development of deepwater
gas fields in the KG-D6 Block. This collaboration aims to leverage the combined expertise and resources
of both companies to unlock the full potential of the reserves. The joint venture will undertake further
exploration and development activities in the block, aiming to maximize the recovery of hydrocarbons
and contribute to India's energy goals.

4. International Operations: Reliance expanded its footprint in international markets through various
acquisitions and partnerships. The company acquired a 20% participating interest in the Marcellus Shale
assets in the United States, further diversifying its E&P portfolio. The Marcellus Shale assets, located in
the Appalachian Basin, have significant natural gas reserves and provide Reliance with exposure to a
high-potential market. This strategic move strengthens Reliance's global presence and enhances its
ability to capitalize on opportunities in the evolving energy landscape.

Financial Performance:
Reliance's E&P division demonstrated robust financial performance during the fiscal year 2021-22. The
division's revenues increased by 3.5 times compared to the previous year, driven by higher production
volumes and improved commodity prices. The successful commencement of production from the R
Cluster and Satellite Cluster projects positively contributed to the division's financial results.
Moreover, Reliance's continued focus on operational efficiency and cost optimization further enhanced
the E&P division's profitability. The company implemented advanced technologies and practices to
maximize recovery rates and minimize operating expenses, resulting in improved margins. The
deployment of cutting-edge technologies, such as artificial intelligence and data analytics, enabled
Reliance to optimize production, reduce downtime, and ensure safe and efficient operations across its
assets.

Reliance's commitment to sustainability and responsible operations was evident in its E&P activities. The
company prioritized environmental conservation, safety, and social responsibility. It implemented
rigorous environmental monitoring, implemented measures to reduce greenhouse gas emissions, and
actively engaged with local communities to promote socio-economic development and well-being.

Conclusion:
Reliance Industries Limited's Oil and Gas Exploration and Production division showcased remarkable
achievements during the fiscal year 2021-22. The successful commissioning of the R Cluster and Satellite
Cluster projects, along with strategic partnerships, strengthened the company's position in the E&P
sector. Reliance's financial performance in this segment highlighted its ability to capitalize on growth
opportunities and generate value for stakeholders.

As the energy landscape continues to evolve, Reliance remains committed to driving innovation,
sustainability, and responsible operations in its E&P activities. The company's focus on leveraging
advanced technologies, optimizing costs, and prioritizing environmental and social responsibilities
positions it well for future success in the oil and gas industry. Reliance's E&P division plays a vital role in
supporting India's energy security and economic growth, contributing to the nation's development goals.