By IANS
New Delhi : State-owned petroleum firms Indian Oil Corp (IOC) and Oil India Ltd (OIL) will together pick up 12.5 percent equity in an oil and gas block in East Timor that is operated by Mukesh Ambani-led Reliance Industries Ltd (RIL).
Both the state-owned companies have obtained approval from their respective boards of directors to acquire equity in Reliance’s asset as partners, a senior IOC official said.
“The IOC and OIL boards have their approval our technical teams were satisfied with the data made available by Reliance,” the official told IANS.
Reliance will hold majority stake in the block and will be the operator of the area, which is spread over 2,384 sq km.
The shares of Reliance Industries, however, fell marginally by 0.96 percent at Rs.2881.05 on the Bombay Stock Exchange, despite rising to the day’s high of Rs.2,948.80.
RIL emerged a winner in the bidding race for the exploration block “K” despite tough competition from international players.
The contract area “K” lies in the Australian North West Shelf, a joint petroleum development area between East Timor and Australia, that has proven reserves.
This region contains world-class discoveries like Bayu-Undan (commenced production in 2004) and Greater Sunrise.
The East Timor government announced the awards on May 23 last year.
Subsequently, a production sharing contract (PSC) for the exploration block was signed by Atul Chandra President, International Operations of Reliance Industries Limited (RIL) and East Timore’s Natural Resources Minister Jose A. Fernandes Teixeira in Dili, capital of East Timor, November 16.
The East Timor government had invited bids for 11 shallow water and ultra deepwater exploration blocks.
Of the 11 blocks offered by the under the licensing round, six blocks have been awarded.