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. RIL began gas production within six and a half years of gas discovery, in comparison to the world average of 9-10 years for similar deepwater production facilities. Continuous gas production for about a year, with 100% uptime, once again demonstrates the Company’s flawless commissioning and execution capabilities.

Within a month of emerging as the largest producer of natural gas in the country, RIL announced a successful assessment of the design capacity of the KG-D6 deepwater gas production facilities in December 2009. A flow rate of 80 MMSCM was achieved through the KG-D6 facilities and delivered to the East-West pipeline. The economic crisis left an impact on the oil and gas industry globally. The economic downturn that followed resulted in unprecedented demand destruction. The industry is on a path of recovery due to fiscal measures announced by various governments. The major deepwater basins of the world namely the East coast of India, Gulf of Mexico, Africa and Brazil continue to witness huge levels of activity and investment. The structural theme for investment in the sector remains valid. The world’s insatiable need for reliable and affordable energy continues to grow unabated. This calls for substantial investments, access to resources and newer technologies to unlock resources from challenging locations. The International Energy Agency (IEA), in its World Energy Outlook 2009, estimates that by the year 2030, global energy demand is expected to increase by 49% from its current level. Oil and natural gas are expected to remain primary energy sources and are expected to meet 51% of the global demand. Natural gas, a low-carbon, lowpolluting green fuel-that flows from RIL’s blocks, is creating unprecedented value for the Company’s shareholders and benefiting India. Increasing concern for climate change augurs well for natural gas as it is an environmentally benign fuel with carbon emissions far lower than other fossil fuels.