Reliance Energy seeks partner for oil hunt

Anil Ambani-controlled Reliance Energy is scouting for partners with experience as operators in oil and gas exploration for striking a strategic alliance to bid for blocks under the new exploration and licencing policy (NELP) VI.

As Reliance Energy does not have any experience in the exploration sector, it will have to be a non-operator in consortia due to NELP VI regulations.

The company has started talks with global exploration and production majors, oil industry sources said. Most of the global oil majors "" including Shell, Exxon Mobil, Chevron and BG "" which had approached Reliance Industries for joint venture explorations, were talking to the Anil Ambani group as well, the sources added.

Reliance Energy executives refused to comment.

"For NELP VI bids, the operator of a consortium should have exploration experience. Acreage holding, average accretion of crude and probable resources, and average annual production, are the other technical criteria for becoming an operator. Reliance Energy cannot lead a consortium because of its lack of experience as an operator," an industry analyst said.

Oil industry sources said Reliance Energy had recruited a few executives from oil and gas companies and they had started studying the regional and other seismic surveys for selecting blocks.

"The oil majors are evaluating their technical skills and the prospects of the NELP VI blocks. The ministry of petroleum has been holding road shows across the globe. Bids can be submitted till September 15 and the blocks will be awarded by January next year," government sources said.