Reliance buys equity in five Indian blocks

Indian conglomerate Reliance Industries Ltd. has acquired an equity stake in five of the exploration blocks awarded to Irish energy multinational Tullow Oil PLC, Dublin, in the northwestern Indian states of Gujarat and Rajasthan. These blocks are adjacent to Reliance�s existing concessions.

Feb 26th, 2001


By an OGJ Online Correspondent


MUMBAI, Feb. 26
�Indian conglomerate Reliance Industries Ltd. has acquired an equity stake in five of the exploration blocks awarded to Irish energy multinational Tullow Oil PLC, Dublin, in the northwestern Indian states of Gujarat and Rajasthan.

These blocks are adjacent to Reliance�s existing concessions.

Reliance signed a memorandum of understanding with Tullow Oil and its subsidiary Tullow India for a 50% stake in GJ-OSJ-1and a 40% holding in GJ-OS-5 (both are off Kutch), as well as a 40% stake in GJ-ON-90/2 and CB-ON-1, both onshore blocks in Rajasthan. It has also taken a 40% share of one land block, KG-ON-1, in Andhra Pradesh.

The deal, the value of which was not disclosed, adds about 30,000 sq km to the group�s existing 100,000 sq km territory. It also makes the company India�s largest private sector player in terms of acreage under exploration.

Reliance has already announced plans to invest $200 million in exploration and production activities before 2005. Its existing 14 blocks are being developed in partnership with the Canadian firm Niko Resources Ltd., Calgary.

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