Energy major Reliance Industries has discovered more oil on India's western coast, raising the potential of the exploratory blocks it has been drilling, the company said on Wednesday.
India's biggest conglomerate whose businesses span petrochemicals, refining, oil and gas exploration and retail said the current flow was at 300 barrels of oil per day (bopd) at the onland exploratory block in the Cambay basin in Gujarat.
The potential commercial interest of the discovery is being evaluated through more data gathering and analysis, it said in a statement.
"The discovery is significant as this play fairway is expected to open more oil pool areas leading to better hydrocarbon potential within the block," it said.
Reliance holds 100 percent participating interest in the block, and three earlier discoveries had a flow rate of 500 bopd. The company has so far drilled 14 exploratory wells in the block that covers an area of 635 square kilometres.
Last year Reliance, controlled by billionaire Mukesh Ambani, started pumping gas from its block in the vast Krishna Godavari (KG) basin off India's east coast, where it made the country's largest gas find.
It has been producing 60 million standard cubic metres a day (mmscmd) of gas from the block. At peak output of 80 million mmscmd it could nearly double India's gas output.
Reliance also produces oil from its D6 block in the KG basin, and holds a stake in the Panna, Mukta and Tapti oil and gas fields off India's west coast.
The company, which owns the world's largest refining complex in Gujarat, earlier this month agreed to pay $1.7 billion to form a joint venture with Atlas Energy at one of the most promising natural gas deposit regions in the United States.
At 0745 GMT, shares in Reliance shares, which has a market value of $78 billion, were trading down 2.6 percent at 1,033.80 rupees in a Mumbai market down 0.85 percent.
(Reporting by Prashant Mehra; Editing by Ranjit Gangadharan)
(For more business news on Reuters Money visit http://www.reutersmoney.in)