Reliance Signs PSC with East Timor
Reliance Industries Ltd. has signed a production sharing contract (PSC) with the Timor Leste (East Timor) Ministry of Natural Resources, Minerals and Energy Policy for the offshore Contract Area K.
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, which 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, Reliance was awarded one block. The area of awarded Block K is 2,384 square kilometers. Reliance will have majority interest and operatorship 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 Dili as its capital city. The country has Indonesia and Australia as its immediate neighbors.
Reliance is the largest private-sector E&P company in India and has proven expertise in deepwater exploration with its world-class discoveries in India's Krishna-Godavari Basin. Additionally, the company has E&P blocks in Yemen, Oman, and Colombia.
- OPEC's Output Curbs Squeeze World's Biggest Oil Refining Complex (Oct 16)
- India's Reliance Industries 2Q Profit Up 7%, Lags Estimates (Oct 13)
- India's Reliance Sells US Shale Asset for $126 Mln (Oct 06)