Reliance to bid for oil in South Asian Region

Mumbai: Reliance Industries Ltd may bid with local or foreign exploration companies to find oil in the South Asian region, said Mr P.M.S. Prasad, President and CEO of petroleum business of Reliance Industries Ltd, on Tuesday.

Mr Prasad was talking to the media on the sidelines of the New Exploration Licensing Policy-VII road show.

Chevron exit

Reacting to the market rumours about the exit of Chevron Corporation from Reliance Petroleum Ltd, which is building a major refinery at Jamnagar, Mr Prasad said that he does not want Chevron to exit the company.

It has 18 months to decide on its investment, he said.

In April 2006, RIL had announced Chevron Corporation picking up five per cent stake in Reliance Petroleum Ltd for $300 million.

The agreement provides Chevron with the right to acquire an additional 24 per cent of the equity in Reliance Petroleum on conclusion of the collaboration agreements between Chevron and the company.

Mr Prasad said that the Jamnagar refinery would be operational this year. The company’s east-west pipeline from the Krishna Godavari basin to Gujarat will be ready by the middle of this year, he added.

Keen on Iraq

RIL will also venture into developing oil assets in Iraq. The company is keen to list with Iraqi Government so it can compete for the tenders.

In November 2007, RIL had signed contracts with the Kurdistan region Government of Iraq for two blocks. The move has angered the Iraqi Government in Baghdad.

“I believe there would be some kind of conciliation between regional government of Kurdistan and Iraqi Government,” Mr Prasad said.