RIL to divest stake in overseas oil and gas arm
16 Mar 2007
Mumbai: Reliance Industries Ltd (RIL) plans to induct a strategic partner in its overseas oil and gas projects after it is spun off as a new entity.
Sources said global energy major Chevron Corporation, which has equity interest in RIL's subsidiary Reliance Petroleum, might be the preferred partner for Reliance Exploration.
RIL will divest 20 to 25 per cent in the Dubai-based Reliance Exploration and Production DMCC, the holding company for RIL's foreign oil and gas projects.
Reliance Exploration will house RIL's interest in a discovered oil block in Yemen and an offshore exploration block in Oman and exploration projects in northern Iraq, East Timor and Columbia.
RIL is keen to acquire gas fields in central and West Asia. Sources said the proposed divestment will strengthen Reliance Exploration in terms of pooling expertise and improving overseas bidding prospects.
The move to divest equity in Reliance Exploration is part of a restructuring exercise that began last year.