RIL signs Production Sharing Contract (PSC) for an offshore exploration block in Democratic Republic of Timor-Leste with its Government

Reliance Industries Ltd has announced that the Minister of Natural Resources, Minerals and Energy Policy of the Government of Timor Leste, Mr Jose A Fernandes Teixeira and Mr Atul Chandra President, International Operations of the Company on November 16, 2006 has signed a Production Sharing Contract for the offshore Contract Area K in Dili, capital of Timor Leste.

In January 2006, the Government of Timor Leste had invited bids for 11 offshore exploration blocks in shallow to ultra deep waters in their country.

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 world class discoveries like Bayu - Undan (commenced production in 2004) and Greater Sunrise.

The Government of Timor Leste announced the awards on May 23, 2006. Of the 11 blocks offered under the licensing round, six blocks have been awarded. In a keenly contested bid with substantial participation from international players, the Company was awarded one block. The area of die awarded block K is 2,384 Sq. Km. The Company will have majority interest and operator-ship in the block.

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.

The Company is the largest private sector E&P Company in India and has proven expertise in deepwater exploration with its world-class discoveries in Krishna Godavari basin in India. Additionally, the company also has E&P blocks in Yemen, Oman and Colombia.

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.

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.

Source : Equity Bulls

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