MUMBAI: Reliance Industries, the country’s most valuable company, on Friay said 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, Reliance said in a statement.
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, Reliance added in the statement.
“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,” the statement added.
Indian companies, such as Essar and Reliance Industries, have been scouting for opportunities to buy overseas assets that have become cheaper in the wake of the global economic downturn. Last month, Reliance Industries had made a preliminary cash offer to buy bankrupt petrochemicals firm LyondellBasell. Essar Oil is in exclusive talks with Royal Dutch Shell to acquire three of its European refineries.
Source: indiatimes.com/
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