Reliance Industries has acquired five oil and gas exploration blocks, earlier awarded to Ireland's Tullow Oil for over £1 million, as part of efforts to consolidate its position in exploration and production business.
The acquisition comes close on the heels of discovery of 7 trillion cubic feet of gas reserves by Reliance, which has emerged as the most aggressive bidder, after the Oil and Natural Gas Corporation, for successive blocks announced by the government under its new exploration licensing policy for last three years.
The government has cleared the acquisition and Reliance is likely to sign production sharing contract agreement soon, sources said in New Delhi.
Reliance spokesperson, however, declined to comment.
As part of the £1.033 million deal, Tullow will farm out between 40 to 50 per cent stake in five of its oil and gas blocks in Gujarat offshore, Gujarat-Kutch basin, Cambay basin and KG basin to RIL.
Reliance would acquire 50 per cent stake in block GK-OSJ-1, offshore Gujarat. Post sell-off, Tullow would have a 25 per cent stake while Oil and Natural Gas Corporation would have 25 per cent stake, sources said.
The company would acquire 40 per cent stake in GK-OS-5, offshore Gujarat block, they said adding Tullow would have 50 per cent stake post-selloff in the block while US-based Okland Oil would have 10 per cent interest.
Reliance would also acquire 40 per cent stake in KG-ON-1 in Krisha-Godavari basin, while Tullow would have the remaining 60 per cent stake.
