RIL signs contract for blocks in Colombia

Wednesday, December 12, 2007

Reliance Industries Ltd has signed hydrocarbon production and exploitation contracts with Agencia Nacional de Hydrocarburos (ANH) of Colombia for two offshore blocks, Borojo north and Borojo south, according to press release.

The contract for six years has an exploration budget of about $50 million. The contract provides exploration period consisting of four phases of 18 months each, with ‘exit right’ at the end of each phase.

The contracts were signed on Monday in Bogota, Colombia. These contracts will in due course be assigned to REP DMCC, a 100 per cent subsidiary of RIL. It envisages exploration of the blocks located in the Pacific Ocean, west of Colombia in water depths reaching up to 1,500 metres. Each block size is approximately 4,000 sq km. RIL had signed technical evaluation agreement in 2005, which have been now converted into contracts.