MANAGEMENT DISCUSSION AND ANALYSIS → BUSINESS OVERVIEW
Oil and Gas
The Exploration & Production (E&P) business remains firmly focused on safeguarding health, safety, and security of its people and assets, alongside efforts to stabilise and progressively enhance production performance.
In the KG Basin, strategic initiatives are being pursued to commercialise additional discovered resources, aimed at augmenting production.
In the Coal Bed Methane (CBM) Business, we have successfully reversed the declining trend in output through the adoption of Multilateral Well (MLW) technology.
Average natural gas production from the E&P business stood at 28.8 MMSCMD, contributing approximately 30% to India’s overall domestic gas supply.
Strategic Objective
Deliver sustainable
growth and maximise
stakeholder value by
safely and responsibly
exploring, producing,
and marketing
hydrocarbons, while
enhancing productivity
to meet India’s energy
needs. Key focus is on
reserves accretion via
commercialisation of
discovered resources
and infrastructure-led
exploration.
in offshore operations
(RIL’s share)
Oil and Condensate Production
People
Gas Production
*Production figures
include KG-D6 and
CBM
Highest Annual EBITDA
Emerging Trends and Business Response including Key Focus Areas
| Emerging Trends | Business Response | |
|---|---|---|
| Clean Energy | Global focus on green energy to address environmental concerns and reduce greenhouse gas (GHG) emissions. | Leverage E&P’s core skill and knowledge base to expand into new energy areas such as Geothermal and Natural H2. |
| Brownfields Development | In the high-cost environment, there is a global focus on brownfield expansions by leveraging existing infrastructure. | Focus on monetising discovered reserves in KG Basin that can be tied back to existing infrastructure. |
| Accretion of Gas resources | Gas being transition fuel, focus on monetising discovered & stranded resources, and exploration for accreting new resources. | Development of Hub Infrastructure through joint participation of GoI and
other
Operators for monetising discovered and stranded resources in Mahanadi
Basin. Infrastructure Led Exploration in KG Basin (KG UDW1 & UD W2). |
| Digital Technologies | Globally, companies are adopting digital platforms to achieve energy and capital efficiencies and higher productivities. | The Company has always been at the forefront in the adoption of latest technologies. It is further enhancing its capabilities through Digital Twin, Autonomous Fields, Virtual Command Centres, and other cutting edge technologies. |
Business Performance
Revenues and EBITDA were up 3.2% and 4.9% respectively, primarily due to higher gas and condensate production in KG D6, CBM, partly offset by lower price realisation.
FINANCIAL PERFORMANCE
| FY 2024-25 |
FY 2023-24 |
Y-o-Y Change |
|
|---|---|---|---|
| Revenue (` Crore) | 25,211 | 24,439 | 3.2% |
| EBITDA (` Crore) | 21,188 | 20,191 | 4.9% |
| EBITDA margin | 84.0% | 82.6% | 140 bps |
| Price Realisation | FY 2024-25 |
FY 2023-24 |
Y-o-Y Change |
|---|---|---|---|
| KG D6 Gas (US$/mmbtu) | 9.7 | 10.1 | (4.0%) |
| CBM Gas (US$/mmbtu) | 11.0 | 14.4 | (23.6%) |
| Condensate (US$/bbl) | 79.8 | 81.1 | (1.6%) |
KG Basin
KG D6 Deepwater Production
Update
KG D6, comprising R Cluster, Satellite
Cluster, and MJ fields, continues
to deliver strong performance with
~28 MMSCMD of gas and ~21,000 bbl/
day of oil and condensate produced in
FY 2024-25, aligned with expectations.
The field has set global benchmarks,
achieving 99.9% uptime and over 14
years of incident-free operations.
Based on field performance, three new wells in R Cluster and one in Satellite Cluster are planned, targeting an additional ~240 BCF of gas recovery.
Exploration Strategy
RIL’s exploration strategy is focused on
leveraging existing infrastructure. Blocks
KGUDWHP-2018/1 (KG UDW1) & KGUDWHP-
2022/1 (KG UDW2), awarded
under OALP Rounds II and VIII, have
received Petroleum Exploration Licenses.
Exploration surveys are underway to
pursue prospects.
Coal Bed Methane
RIL is producing Coal Bed Methane
(CBM) from Block SP (West)-
CBM-2001/1, with over 320 wells
contributing to an average output
of ~0.8 MMSCMD in FY 2024-25, a
30% year‑on-year increase. As part
of further production augmentation,
we have completed first 40-well
multilateral horizontal well (MLW)
campaign. This has helped in successfully
reversing field decline and boosting
production. A second 40-well campaign
has commenced in April 2025.
Reliance Gas Pipeline Limited, an RIL subsidiary, operates the 302 km Shahdol–Phulpur pipeline, linking CBM fields to the National Gas Grid and enabling access to consumers nationwide.
Update on Arbitrations
and Other Legal Issues
There are certain disputes relating to the
E&P Business of the Company which
are presently sub judice before various
courts and tribunals. The details of these
disputes have been provided in the notes
to accounts (refer Note 33.3 and 33.4 of
Standalone Financial Statements).
SCOT Analysis
STRENGTHS
- World-class infrastructure at KG D6 and CBM blocks
- Proven capabilities in deepwater project execution
- Strategic partnerships with leading global players
CHALLENGES
- Constrained supply chain dynamics
- Exposure to fluctuating commodity prices
OPPORTUNITIES
- Potential to monetise nearby resources using existing infrastructure
- Ability to support and scale with India’s growing gas-based economy
THREATS
- Global LNG oversupply could pressure domestic price realisation
- Rapid shift towards renewables may reduce long-term oil and gas demand
OUTLOOK
Natural gas is poised to play a pivotal role in India’s energy transition, with its share in the energy mix projected to rise from 6% to 15% by 2030. Reliance’s gas portfolio is well-aligned to support this shift, currently contributing nearly 30% of the country’s domestic gas production. Ongoing development efforts in deepwater and CBM assets, leveraging existing infrastructure, are expected to further enhance supply and help meet growing domestic demand.
Powering a Net Carbon Zero Future
RIL is building a new energy ecosystem from the ground up—spanning photons to electrons to green molecules—across solar, storage, green hydrogen, and sustainable chemicals. The past year marked a defining phase in that journey.
Strategic Objective: From Ambition to Execution
Mission: Enable RIL’s transition to Net Carbon Zero by 2035 through a fully
integrated,
globally competitive clean energy platform.
Approach:
- Fully Integrate Across Value Chain for Each Giga Factory: Ability to capture margins across value chain, ensure supply chain security, and opportunistically play in various markets.
- Modular Giga-Scale Manufacturing: Each giga factory will be modular in execution and can be scaled easily.
- Deep-Tech R&D Capabilities: State‑of-the-art prototyping, testing and validation centres in India and deep research labs in Singapore, USA, and China.
- Global Partnerships: Collaborations with globally leading technology and product companies and academic research institutions.
- Energy Security and Economic Impact: Reduce import dependence, spur industrial investment, and create green jobs to redefine India’s energy future.
Global and Indian Energy Industry Overview
According to the IEA, global electricity demand is projected to rise significantly, with
renewables playing a pivotal role in meeting this growth.
By 2030, renewables are expected to generate nearly half of the world’s
electricity, with wind and solar PV alone accounting for 30%—double
their
current share. This expansion is driven by the addition of over 5,500 gigawatts of
renewable
capacity between now and 2030, equivalent to the current power capacity of China,
the
European Union, India, and the United States combined.
India too has ambitious goals:
Non-fossil target by 2030
Production capacity by 2030 under Green Hydrogen Mission
Reliance is positioned as a keystone player in India’s clean energy transition.
Business Updates
Dhirubhai Ambani Green Energy Giga Complex: Creating the Future, at
Scale
The complex is one of the world’s largest integrated renewable manufacturing hubs.
- Recently, RIL commissioned its first solar GW+ line with BIS certification.
- RIL is well on its way to establish 10 GW fully integrated solar PV manufacturing from polysilicon to ingot and wafer to cell/module along with glass and encapsulant and expand it in modular fashion thereafter.
- RIL is also progressing rapidly to establish a 30GWh modular battery giga-factory for cell, packs and containerised BESS systems and backward integrate into battery materials.
- RIL is on track to establish a fully automated, multi-GW electrolyser manufacturing facility by end 2026.
- Reliance has secured exclusive technology licensing from Nel ASA for alkaline electrolysers (India and captive global).
- RIL has significantly progressed project development work on the arid wasteland leased in Kutch, which is advancing at a rapid pace.
- RIL has also been awarded key transmission projects (Lakadia-1 and Kandla) securing power connectivity for our captive requirements from Kutch as well as for our green chemical projects.
Bio Energy: Turning Waste into Wealth
India’s vast biomass reserves—nearly 230 million tonnes of surplus non-cattle
feed—represent a dual opportunity: reduce air pollution and unlock rural economic value.
Since its inception in 2023, Reliance Bio Energy has become India’s largest integrated bioenergy platform. In FY 2024-25, we:
- Operationalised 7 CBG plant with ~130 TPD production capacity (0.5 lac TPA). These plants shall also produce 2 lacs TPA of high quality Fermented Organic Manure (FOM).
- On track to establish 55 CBG plants including integrated CBG Hub with a cumulative capacity of 0.4 MTPA of CBG and 2 MTPA of organic manure.
- Built the world’s largest bioenergy R&D centre in Jamnagar, focused on microbial innovation, crop science, automation, and plant energy self-reliance.
Our partnerships with state governments and research institutions like IGFRI Jhansi are accelerating innovation in drought-resistant energy crops and salinity-tolerant cultivation.
