RIL to sell up to 10% in KG basin
Mukesh Ambani’s Reliance Industries (RIL) has initiated talks with global majors to offload upto 10% stake in its D-6 block in the Krishna Godavari (KG) basin.
The company is learnt to have mandated Goldman Sachs to scout for a strategic partner in lieu of technology for further exploration and production.
ET was the first to report on January 22, 2007 that RIL may hive off its KG basin D-6 assets into a separate company and offer stake to a foreign player.
“RIL has opened the data room for viewing and almost every global major has visited it. Some of the companies like BP Plc and BG Group have come for a second visit. It’s at a very initial stage and RIL has so far not discussed anything about valuation or percentage of stake sale,” a source close to development told ET.
RIL is likely to spin off its KG assets into a new company and then offer close to 10% stake to a strategic partner. This is to ensure that the partner does not get a stake in RIL. On Thursday, Royal Dutch Shell confirmed that it was in talks with RIL about taking a stake in the D6 block in the KG basin off India’s east coast.
“They’ve been remarkably successful in the development of the block so far and I think the growth of the Indian gas market is obviously going to be important for the future,” Malcolm Brinded, Shell’s head of exploration and production, told international newswires on the sidelines of the International Oil Summit in Paris.
This deal, if it goes through, will help RIL’s plans, as a lot of capital expenditure required for the gas production and transmission can be done through this deal.
”We have been working with many investment bankers across all our businesses including refining and exploration and production (E&P). We are looking at various alternatives to create additional share holder value. However, at this stage, there is no specific transaction in sight,” an RIL spokesperson said
