RIL in Talks With Hardy for Saurashtra Oil, Gas Block Sale

India’s Reliance Industries is in negotiations with Hardy Exploration for sale of its 90% stake in the Saurashtra basin offshore oil and gas block, GS-O1, Hindustan Times reports.

Hardy Exploration is a minority shareholder in the block with 10% share.

A senior petroleum ministry official told Hindustan Times that RIL has informed the government in its December 20 letter about the stake sale in the block that was awarded to the consortium of RIL and Hardy under the second round of New Exploration and Production Policy. The block was declared commercial last year after the discovery of hydrocarbons and was named Dhirubhai-33.

"In considering the size of the reserves of Discovery D33 and likely capital costs involved in developing the reserves, RIL is of the opinion that the development of Discovery D33 is marginal and currently does not fit in RIL's portfolio," RIL's letter said, the newspaper report pointed.

"In order to enable Hardy to develop Discovery D33 on its own, RIL and Hardy are in the process of agreeing documentation for the transfer of RIL's 90% participating interest and operatorship to Hardy," RIL said in its letter, adding that the proposed transfer will be subject to consent being obtained from the government under the production sharing contract (PSC).