RIL signs deals for oil blocks in Colombia

Reliance Industries has signed contracts for two oil and gas blocks in Colombia, and is planning to spend $50 million over the next six years.

RIL, which had signed a technical evaluation agreement with Agencia Nacional de Hydrocarburos (ANH) of Colombia for two offshore blocks in 2005, signed production sharing contracts yesterday for Borojo North and Borojo South blocks, an official release said today.

The blocks are located in the Pacific Ocean, west of Colombia, in water depths reaching up to 1,500 meters. Each block size is approximately 4,000 sq km. "RIL has carried out comprehensive geological studies before selecting these blocks," the statement added.

The contracts provide a six-year exploration period consisting of four phases of 18 months each with exit right at the end of each phase. "Over these six years, the company is expected to drill up to two wells in each block apart from conducting seismic, multi beam and heat flow surveys," the release said.