Published on Saturday, December 5th, 2009 at 10:58 AM
Reliance Industries Ltd., India’s biggest company by market value, said Friday it has agreed with Colombia’s national oil company, Ecopetrol SA , to jointly explore deepwater blocks in the South American country.
The agreement, signed by Reliance’s wholly owned unit, Reliance Exploration and Production DMCC, covers the exploration of the Borojo North Block 42 and Borojo South Block 43 in Colombia.
Under the agreement, Ecopetrol will get a 20% stake in the blocks. Reliance will hold the remaining stake and will also operate the blocks, the company said.
The two deepwater blocks cover about 8,000 square kilometers, in water depths ranging from 60 meters to 1,500 meters.
“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,” Reliance said.
Mukesh Ambani, who heads Reliance, had previously said the company will accrue oil and gas properties overseas.
Colombia is one of the countries in which Reliance has 14 of its overseas blocks. The other countries are Peru, Yemen, Oman, Kurdistan, East Timor and Australia.
The agreement is effective from Nov. 23 and is subject to approval by the ANH, Colombia’s upstream regulator.
Source: http://online.wsj.com/article/SB125992116814076449.html?mod=googlenews_wsj
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