Reliance inks oil block deal with Timor-Leste

Reliance Industries has signed a production sharing contract (PSC) with the Timor-Leste governemnt for the offshore contract area K in the country's capital Dili.

According to an official release issued by the company to the BSE today, Atul Chandra, president (international operations) of RIL, signed the contract with the Timor Leste minister of natural resources, minerals & energy policy Jose A Fernandes Teixeira, on November 16, 2006.

In January 2006, the government of Timor Leste had invited bids for 11 offshore exploration blocks in shallow to ultra deep waters. The country announced the awards on May 23, 2006. Of the 11 blocks offered under the licensing round, six blocks have been awarded, of which the company has won 1 block. The area of the awarded block K is 2,384 sq. km.

The company will have majority interest and operator-ship in the block, the release said.

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 release added.