Reliance Industries Acquires Five Blocks from Tullow Oil

Reliance Industries Ltd. of India, which is exploring oil in 18 blocks with a total acreage of about 170,000 square kilometers, will acquire a 50 percent interest in five blocks from Tullow Oil of Ireland.

The terms of the deal were not disclosed, however, Reliance expects to make an initial capital expenditure of $300 million over the next three years. Three of the blocks being acquired are in Kutch offshore, one in Cambay and one in the Krishna Godavari region.

The company, which operates India's largest private refinery with an annual capacity of 27 million tonnes and also has petrochemical plants, has been bidding for blocks offered for exploration by the Indian government. It was also awarded four blocks under the second round of India's New Exploration Licensing Policy which offered attractive tax concessions to attract private capital to explore oil in the energy-deficient country.