RIL arm may offload stake in overseas exploration blocks

Reliance Industries may sell part of its stakes in some of the overseas oil and gas blocks to lower its exploration risk.

RIL, through its wholly-owned subsidiary Reliance Exploration and Production DMZ, holds interests in 15 overseas exploration blocks and is considering farming-out a part of its stake, industry sources said.

The company may sell stake in six blocks in Yemen, Oman, Colombia and Australia, they said, adding RI is in discussion with global energy firms to sell a part of its shareholding.

When contacted, a RIK spokesperson said: "It is a general practice in the global exploration and production business to optimize the portfolio on the basis of risk and reward."

The company is looking at selling stakes so that its budget for overseas exploration can be spread over larger number of projects while also getting global expertise.

"The need for such farm-outs are determined by various factors, including the strength added by a potential partner, structuring needs of the portfolio among others and could be undertaken after some basic studies have been completed.

"This is an ongoing exercise and not something new or a one-time exercise," the spokesperson said.

Rails overseas exploration acreage includes three areas in Yemen, two each in Oman, Kurdistan and Colombia and one each in East Timon and Australia.