News: RIL in production sharing contract with Timor Leste

(UNI 17/11/2006) New Delhi - Mukesh Ambani's Reliance Industries Ltd today announced that it has entered into a production sharing contract (PSC) with the government of Timor Leste for an offshore exploration block in in Dili, capital of the country.

As per the terms of the contract bagged by the company, RIL will have majority interest and operator-ship in the die awarded block K of 2,384 sq km area.

The acreage offered lies in the proven petroleum province of Australian North West Shelf and is adjacent to the Timor Sea, which is a joint petroleum development area between Timor Leste and Australia. This region contains discoveries like Bayu-Undan, which commenced production in 2004, and Greater Sunrise.

''The company is confident that with its expertise in the integrated Petroleum Value-chain and in implementing world-class projects, it will be able to significantly contribute to the upliftment of the Timor Leste economy and its population,'' a RIL statement said.

The company believes in exploring in geographies across the globe with a long-term perspective and in the process become a valuable partner of growth of those countries, it added.

RIL, a forerunner in the exploration and production (E&P) business in India, has made significant discoveries in Krishna Godavari basin besides blocks in Yemen, Oman and Colombia.

Timor Leste Minister of Natural Resources, Minerals and Energy Policy Jose A Fernandes Teixeira and RIL Atul Chandra President (International Operations) signed the contract in Dili yesterday.

The Government of Timor Leste had invited bids for 11 offshore exploration blocks in shallow to ultra deep waters in their country in January this year. Of the 11 blocks offered under the licensing round, six blocks were awarded in May.

Timor Leste is the world’s youngest nation having achieved independence from Indonesia in May 2002. The total population of the country is 1 million with Dilli as its capital city. The country has Indonesia and Australia as its immediate neighbours.