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RIL buys Niko stake in 10 oil and gas blocks

Reliance Industries has acquired the 10 per cent stake held by the Canada-based Niko Resources in 10 out of the 12 oil and gas blocks the consortium had won in the first round of New Exploration Licensing Policy .

Niko has retained its holding in the deepwater block KG-DWN-98/3 in Krishna Godavari basin where Reliance last week announced the discovery of world-class gas reserves, estimated at 7 trillion cubic feet, sources said.

The Canadian company has also retained its holding in the north east coast shallow water block nec-osn-97/2.

"In the case of 10 blocks, pursuant to conditional agreements previously entered into with Reliance, which have now become enforceable, all of the company's interest is transferred to Reliance, the operator of the blocks, with full indemnity from Reliance for all liability and costs under the respective production sharing contracts," an official Niko spokesperson said.

Sources said that the government was yet to approve the acquisition by Reliance.

The Reliance-Niko consortium (Reliance - 90 per cent and Niko 10 per cent) has committed to investing $760 million in three phases in the 12 blocks it was awarded in the first round of NELP.

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