Reliance Gas Exploration & Production Joins Ecopetrol In Exploring Deepwater Blocks In Colombia

Online, December 8, 2009 (Newswire.com) - Colombia, 4th December 2009: Reliance Industries Limited, the Mukesh Ambani - controlled energy major has been scouting for acquisitions abroad off late and recently proposed to buy bankrupt Dutch petrochemical chemical major LyondellBasell.
In continuation with the overseas ventures Reliance Exploration and Production DMCC (REP), a wholly owned subsidiary of Reliance Industries Limited, and Ecopetrol SA (Ecopetrol) signed the Farm-out Agreements, effective from 23rd November 2009, for Borojo North Block 42 and Borojo South Block 43 in Colombia, subject to approval by ANH, the Colombian national upstream regulator. As per the Agreements, Ecopetrol acquires a 20% stake in the blocks while REP will retain the balance and the Operatorship in these blocks. Reliance's unit will hold the rest of the stake in the blocks and will be their operator.
The two deepwater blocks cover an area of approx. 8000 Sq Kms in water depths ranging from 60 - 1500 metres. REP has completed acquisition and processing of 2D seismic of around 3000 line kms and is in the process of commencing multi-beam bathymetry studies covering both the blocks.
As the National Oil Company of Colombia, Ecopetrol brings a richness of technical and administrative experience in the region. Coupled with the deepwater experience of Reliance this strategic co-operation could result in a well calibrated approach to risk management and accelerated exploration and development in a large part of Pacific offshore.
This goes hand in hand with the fact the that Reliance Industries (RIL) has become the largest natural gas producer in India with over 50 million standard cubic metres per day (mscmd) output which surpasses that of state-run Oil and Natural Gas Corp's (ONGC).
"RIL is now the country's largest gas producer," an official from the Indian Oil Ministry said. RIL's gas production from its D6 fields in the Krishna Godavari basin touched 50.15 mscmd on Sunday, according to the regular output report RIL sent to the oil ministry. This is the first time it has surpassed ONGC's 49.6 mscmd output.