Saturday, February 24, 2018

Reliance Industries has pulled out of the last oil block it held in Peru, trimming its overseas assets to just two properties in Myanmar. In 2007, Reliance Exploration and Production (REP) DMCC was primarily set up for acquiring overseas assets.

It had steadily acquired 16 conventional oil and gas assets, including four in Peru, three in Yemen (one producing and two exploratory), two each in Oman, Kurdistan and Colombia and one each in East Timor and Australia. It last bagged two oil and gas exploration blocks in Myanmar in 2014.

But the company slowly exited most of its international assets. RIL held 10 percent interest in the block. Anglo-French oil and gas company Perenco held 55 percent stake in the block while PetroVietnam of Vietnam held the remaining 35 percent.

The company now is left with just two exploration blocks in Myanmar - M17 and M18. RIL holds 96 percent stake in each of the two blocks with the remaining 4 percent being with a local company. For Block M17, the company has sought an "extension for study period" from Myanma Oil and Gas Enterprise or MOGE.

RIL's domestic oil and gas business portfolio, which at one point of time comprised of 42 blocks or fields, has shrunk to five conventional oil and gas assets and two coal-bed methane (CBM) blocks. As part of its upstream (hydrocarbons exploration and production) portfolio rationalisation, the company has been exiting those assets which it feels are not going to give good return on investment.