HPCL looks to buy Jindals' stake in Rajasthan block

Hindustan Petroleum Corporation (HPCL) is in talks with Jindal Petroleum to buy the Jindals’ 25% in oil and gas block in Rajasthan. Jindal Petroleum, in a consortium led by Hindustan Oil Exploration Company and Oil India, had bagged the block in a NELP (New Exploration Licensing Policy-VII) bidding round in 2008. The block, RJ-ONN-2005/1, has an estimated recoverable reserves of 500 billion cubic feet of gas.

Under the New Exploration Licensing Policy (NELP-VII), the Rajasthan block was awarded to the consortium consisting HOEC, Bharat Petroleum Resources, Jindal Steel & Power , and mid-size firm IMC, with each owning 25% stake. The block is located adjoining the RJ-ONN-2005/2, where HOEC and Oil India are already partners.