Hardy Exploration to buy out Reliance in Saurashtra block | business | Hindustan Times
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Hardy Exploration to buy out Reliance in Saurashtra block

business Updated: Jan 09, 2013 21:42 IST
Anupama Airy
Anupama Airy
Hindustan Times
Anupama Airy

A deal involving sale of Mukesh Ambani-led Reliance Industries Ltd's (RIL's) 90% stake in the Saurashtra basin offshore oil and gas block, GS-O1, to minority joint venture partner Hardy Exploration is in the final stages.

Hardy Exploration currently owns 10% stake in the block.

Confirming the move, a senior petroleum ministry official told HT that RIL has informed the government in its December 20 letter about the stake sale in the block that was awarded to the consortium of RIL and Hardy under the second round of New Exploration and Production Policy. The block was declared commercial last year after the discovery of hydrocarbons and was named Dhirubhai-33.

An RIL spokesperson refused to comment on the development.

"In considering the size of the reserves of Discovery D33 and likely capital costs involved in developing the reserves, RIL is of the opinion that the development of Discovery D33 is marginal and currently does not fit in RIL's portfolio," RIL's letter said.

"In order to enable Hardy to develop Discovery D33 on its own, RIL and Hardy are in the process of agreeing documentation for the transfer of RIL's 90% participating interest and operatorship to Hardy," RIL said in its letter, adding that the proposed transfer will be subject to consent being obtained from the government under the production sharing contract (PSC).

RIL said it will shortly submit an application to the government on this stake sale.