Articles on Reliance Industries Ltd.
Hindu Business Line, Our Bureau, 18 November 2006
Videocon's global subsidiary concluded a PSC with Timor Sea Designated Authority for the JPDA block within the Bonaparte Basin. Videocon signed the pact along with its equal joint venture partners, Oilex of Australia, Gujarat State Petroleum Corporation Ltd and BPCL.
The consortium has agreed to complete a guaranteed work programme of acquiring 1,006 line km of 2D seismic and 1,020 sq km of 3D seismic and drill four wells in the first phase of three years. The risked reserves in the block are estimated at 47 million barrels of oil/ oil equivalent.
Reliance signed a separate PSC for the offshore contract area K in Dili, capital of Timor Leste. The area of the awarded block spreads over 2,384 sq km. The company has E&P blocks in Yemen, Oman and Colombia.
It was in January 2006 that the Government of Timor Leste invited bids for 11 offshore exploration blocks in shallow to ultra deep waters in that country. The acreage offered lies in petroleum province of Australian North West Shelf and is adjacent to the Timor Sea, which is a joint petroleum development area between Timor Leste and Australia. The region contains major discoveries like Bayu-Undan and Greater Sunrise.
The Government of Timor Leste announced the awards in May this year. Of the 11 blocks under the licensing round, six have been awarded, including the one awarded to Reliance.
IRIS News Digest, 10 March 2007
Reliance Industries has hived off its overseas oil and gas projects into a separate wholly-owned company based in Dubai and is eyeing a tie-up with ONGC Videsh to jointly bid for oil and gas opportunities abroad, reports Business Standard.
Reliance Exploration and Production DMCC has been formed with Mukesh Ambani as its chairman. The company`s interests in a discovered oil block in Yemen and in an offshore exploration block in Oman, besides exploration projects in northern Iraq, East Timor and Columbia will be transferred to the new company.
The Dubai-based firm has been modelled on lines of ONGC Videsh, which is a fully owned overseas investment subsidiary of state-run Oil and Natural Gas Corp (ONGC).
"It is keen on bidding together for major opportunities with OVL. OVL, which has presence in 15 countries and has well-known tie-ups like the one with Mittal Steel for overseas oil asset acquisitions, has earned itself a reputation as a serious player. Reliance (Q, N,C,F)* is a conservative player and would rather like to share risks with OVL", according to sources.
Moreover, the company is looking at opportunities in Africa, Latin America and West Asia.
The Mukesh Ambani-run Reliance Industries is keen on acquiring gas fields in the Central Asian region and West Asia.
Further, the company has signed a technical evaluation agreement with ANH (Columbia`s hydrocarbon regulator) and also entered into a cooperation agreement with Ecopetrol (national Oil Co of Columbia) for farm-in opportunities in that country.
Shares of the company closed lower by Rs 16.30, or 1.22%, at Rs 1,318.50. Total volume of shares traded at the BSE was 983,472. (4.49 pm, Friday).
Lloyds List, 14 September 2007
RELIANCE Industries claims to be at an advanced stage of negotiations to secure contracts for farm-in activities in two oil blocks in Peru, and is looking at opportunities in Africa, Latin America and West Asia, either through the consortium approach or on its own, writes Shirish Nadkarni.
If the Mukesh Ambani-led company successfully acquires interests in the two Peruvian blocks, the total number of its overseas assets will go up to 13.
Its earlier acquisitions have been two blocks in Iraq, three in Yemen, one in East Timor, two each in Oman and Columbia, and one in Australia.
The most recent acquisition was the WO6-05 exploration block in the Bonaparte Basin in Western Australia, its first block in the country.
The block measures 5,760 sq kms and lies in water depths of between 100 m and 120 m.
Australian authorities have issued four exploration permits to three other companies in the Bonaparte Basin in this round Total Australia (two permits), China National Offshore Oil Corporation Australia and Goldsborough Energy (one permit each).
In Yemen, Reliance's Block 9, in which it owns a 20% equity stake, started oil production in December 2005, with an initial rate of around 2,000 barrels of oil per day.
Canada's Calvalley Petroleum is the operator of the block with 60% stake, while Hood Oil has the remaining 20%.
The Indian outfit has also been awarded onshore exploration blocks 34 and 37 in Yemen, in partnership with local company Hood Oil.
Blocks 34 and 37, each measuring 7,500 sq km and located on the border with Oman, were among the seven blocks offered by Yemen in its second licensing round.
Reliance has followed its success in Yemen by acquiring assets in Oman. Last year, the company acquired acreage in East Timor.
It has also initiated talks with state-owned Indian Oil Corporation to acquire assets abroad, particularly in South East Asia.
Indications are that IOC is also interested in farm-in opportunities in Reliance's existing assets.
Reliance has also acquired a majority stake and management control in an East Africa-based oil retail distribution company, Gulf Africa Petroleum Corp.
The acquisition was made through its wholly-owned subsidiary, Reliance Industries Middle East, a company registered in the United Arab Emirates.
Headquartered in Mauritius, GAPCO operates in the downstream petroleum sector.
It was formed in 1992 to acquire the retail petroleum marketing assets of Esso in Tanzania, Uganda and Mauritius; and today owns and operates storage terminals in Dar-es-Salaam (Tanzania), Mombassa (Kenya) and Kampala (Uganda). It has other depots in East and Central Africa, and runs over 250 outlets, covering the retail and industrial segments.
Reliance has described the acquisition as strategic, helping it achieve its 'global vision in the petroleum downstream sector'.
GAPCO's synergies with Reliance's Indian assets are apparent. One of the feathers in the Reliance domestic crown is its 660,000 bpd refinery at Jamnagar on the Gujarat coast.
Another refinery with a capacity of 580,000 bpd is being established in the same region by subsidiary Reliance Petroleum.
The GAPCO buy will help Reliance integrate the value chain, consisting of refining, shipping, trading, terminals and marketing through both retail and wholesale segments, and help establish a natural marketing link for its refinery products.
IOC in talks with RIL for joint exploration
The Hindu Business Line, 11 October 2007. By Richa Mishra
New Delhi, Oct. 10 State-owned Indian Oil Corporation Ltd (IOC) and private company Reliance Industries Ltd (RIL) are likely to join hands for exploration in the latter's oil block in East Timor. RIL and IOC have been in talks for a possible tie-up to acquire oil and gas assets abroad as well as exploring farm-in opportunities for the PSU major in the existing overseas assets of RIL.
Sources said, "Talks have taken place between the two entities. IOC was looking at farm-in opportunities which would give it participating interest in RIL's asset."
Farm-in activities are very common among global oil and gas exploration companies. To come in as a farm-in partner, a company is not required to acquire the asset directly, but develop the property by taking participating interest in the block. The company also shares the risk involved in the exploration activity with the operator.
At a recent meeting, the two companies are understood to have discussed a possibility of IOC joining RIL in the East Timor asset, sources told Business Line.
While both IOC and RIL officials remained non-committal on which asset the former could join, they confirmed that discussions were going on between the two entities.
In May last year, RIL had won a block in East Timor. RIL had bid for two of the 11 offshore blocks tendered by East Timor, but could manage only one contract area. The company had bid for area 'K' and area 'E', but won only the former.
Besides foraying into domestic oil and gas exploration and production in a big way, RIL is acquiring assets abroad to supplement its crude needs.
RIL has signed an agreement to explore for oil and gas in East Timor. It will explore offshore area in a place known as contract area 'K'.
The area has proven reserves in the Australian North West Shelf and is adjacent to the Timor Sea.
RIL will hold a majority stake and will operate the area which is spread over 2,384 sq km. This region contains discoveries like Bayu - Undan (commenced production in 2004) and Greater Sunrise.
Currently, IOC has seven overseas assets through consortium approach. It has two each in Libya and Yemen, and one each in Nigeria, Gabon, and Iran. In the domestic oil and gas exploration sector it has 10 blocks.
Hindu Business Line, 31 December 2007. By Richa Mishra
IOC, along with Oil India Ltd, is now expected to join hands with RIL for exploration in the latter’s oil block in East Timor.
Both the State-owned companies have obtained approval from their respective Boards to acquire equity in RIL’s asset as farm-in partners.
The two companies will now work on a final agreement with RIL. Official sources told Business Line that “the IOC Board which met on Friday approved its participation in the project. OIL Board has already given its nod. The approval of the respective Boards was taken after the technical teams of IOC and OIL expressed satisfaction on the data made available by RIL.”
Indications are that both IOC and OIL are looking at an equity stake of 12.5 per cent each in the project. RIL will hold a majority stake in the block and will be the operator of the area which is spread over 2,384 sq km.
In May 2006, RIL had won a block in East Timor. RIL had bid for two of the 11 offshore blocks tendered by East Timor, but could manage only one contract area. The company had bid for area ‘K’ and area ‘E’, but won only the former.
RIL has now signed an agreement to explore for oil and gas in East Timor and it will explore the offshore area in contract area ‘K’ that has proven reserves in the Australian North West Shelf and is adjacent to the Timor Sea.
This region contains discoveries such as Bayu-Undan (commenced production in 2004) and Greater Sunrise.
The State-owned companies have been in talks with RIL for farm-in opportunities for them in the existing overseas assets of RIL.
A farm-in activity, which is very common among global oil and gas exploration companies, allows an entity to come in as a partner.
As a farm-in partner, a company is not required to acquire the asset directly, but develop the property by taking participating interest in the block.
The company also shares the risk involved in the exploration activity with the operator.
Currently, IOC has seven overseas assets (excluding the recent gas blocks acquired in Libya) through consortium approach.
PTI, January 09, 2008
Reliance Industries, which holds 100 per cent stake in the offshore block, is getting the state-run firms to share exploration risk. IOC and OIL, who will take 12.5 per cent stake each, will share past exploration cost in the Block 'K' in proportion to their equity stake, industry sources said.
OIL-IOC combine is also paying a small premium to Mukesh Ambani-run RIL for the farm-in opportunity. Boards of both IOC and OIL have approved the stake in the 2,384 square kilometer exploration acreage where Reliance will be the operator.
Reliance had in May 2006 won the offshore area 'K' in the East Timor bid round, where 11 offshore blocks were offered. Reliance bid for areas 'K' and 'E' but won only the former.
OIL-IOC combine last month won four blocks in Libya. The combine forged a 50:50 partnership with Algerian national oil firm Sonatrach to win areas 95 (one block) and 96 (three blocks) located in the western Ghadames basin in Libya. The combine had in 2005 won 7,087 sq km Block 86 and 2,710 sq km Block 102/4 in Libya. Both hold 50 per cent stake in each and OIL is operator for both.
Prior to East Timor, the combine had oil acreage in five countries - Farsi Block in Iran, exploration blocks in Libya, Block Shakthi in Gabon, OPL-205 in Nigeria and Blocks 82 and 83 in Yemen.
Reliance has nine properties in five countries - Blocks 9, 34 and 37 in Yemen, Blocks 18 and 41 in Oman, Block 'K' in East Timor, Block WA-405-P in Australia and Blocks Rovi and Sarta in Kurdistan region of Iraq.
The Timor-Leste Institute for Development Monitoring and Analysis (La’o Hamutuk)