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RIL in deal with Colombian firm for deep water blocks

07 Dec 2009 Evaluate

Reliance Industries

, the country’s most valuable company, through its wholly-owned subsidiary Reliance Exploration and Production DMCC has signed a deal with Colombian state oil firm Ecopetrol for two deepwater blocks in Colombia.

Under the agreement, the foreign company acquires a 20% stake in Borojo North Block 42 and the Borojo South Block 43 in Colombia, which cover a combined 8,000 sq km in water depths ranging from 60-1,500 metres. Reliance Exploration holds 80% ownership in the blocks and will be their operator.

Effective November 23, the deal is subject to approval of Colombia’s upstream regulator ANH. Reliance Exploration has completed acquisition and processing of 2D seismic of around 3,000 line km and is in the process of commencing multi-beam bathymetry studies covering both the blocks. As the national oil company of Colombia, Ecopetrol brings a richness of technical and administrative experience in the region. Coupled with the deepwater experience of Reliance, this strategic cooperation could result in a well calibrated approach to risk management and accelerated exploration and development in a large part of Pacific offshore.

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Reliance Industries Share Price

1265.70 -9.65 (-0.76%)
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