Reliance-Niko to invest $750 million in oil exploration


MUMBAI�Reliance Industries Ltd., one of the largest and most diversified business conglomerates in India, has decided to invest 34.62 billion rupees ($750 million) in its consortium with Niko Resources Ltd. for exploration of the dozen oil blocks it was recently awarded. The consortium was awarded nine shallow-water and three deepwater blocks.

The investment is to be made in three phases. The consortium will initially put in 7.92 billion rupees in the first phase, which will be spread over 3 years.

In the second and third phases, amounts of 11.30 billion rupees and 15.40 billion rupees respectively will be pumped into the venture.

The largest chunk of investment�6.64 billion rupees�will flow into the exploration of the Krishna-Godavari deepwater offshore block, covering 7,645 sq km.

�Our investments in the first phase will be for conducting seismic surveys,� a company source revealed. �We expect to spend 6 billion rupees for the exploration of the Mahanadi deepwater offshore basin.�

Of the nine shallow-water blocks awarded to the consortium, the biggest investment will go into the exploration of the two offshore oil blocks off Mumbai.

The Reliance-Niko consortium was awarded 42% of the total area allocated for the exploration round. Out of the total area of 218,185 sq km put up for bidding, the consortium got 90,810 sq km.

Public-sector oil companies were awarded another 117,575 sq km, while Cairn Energy PLC of the UK was awarded 9,800 sq km.

The Indian government will invite bids in November or December this year for the second round of exploration contracts. Forty-eight blocks were offered in the first round, while the total number of blocks to be awarded in the forthcoming round will be 30.

Related Articles

Financial questions seen for US shale gas, tight-oil plays

03/25/2014 Financial problems of operators in US shale gas and tight oil plays might hold production growth below current expectations, according to the autho...

BOEM: Firms bid $850 million in high bids in central gulf lease sale

03/24/2014 The US Bureau of Ocean Energy Management reported that its central Gulf of Mexico Lease Sale 231 received 380 bids from 50 companies on 326 blocks,...

Statoil makes gas find on flank of Visund field in North Sea

03/24/2014 Statoil Petroleum AS has made a natural gas discovery on the northeast flank of Visund field in the northern part of the North Sea, the Norwegian P...

CNOOC makes natural gas discovery in Bohai Bay

03/24/2014 CNOOC Ltd. has made what it describes as a “mid-sized” natural gas discovery in the Bozhong 22-1 structure in the south-central region of Bohai Bay.

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected