THE HINDU: RIL in talks with Chevron, Shell for stake sale in KG block
News Update Service
Monday, April 14, 2008 : 1700 Hrs
New Delhi (PTI): Reliance Industries, the country’s largest private firm, is in talks with global energy majors including Chevron Corp, Shell, Exxon and BG for a possible stake sale in its Krishna Godavari basin deepsea gas field.
The company, which discovered the world’s largest gas field of 2002 in KG-D6 block off the east coast, is looking at hiving off the block that holds over 50 trillion cubic feet of reserves into a separate subsidiary for induction of a technologically-strong strategic partner.
Industry sources said Reliance has mandated Goldman Sachs for the search of technology partner and already five companies BG of UK, Eni of Italy, Shell, Exxon and Chevron – have visited the company’s dataroom set up in New York. Total of France, BP of UK and Petrobras of Brazil are also likely to visit the dataroom.
Reliance, they said, is not looking at a strategic partner for financial reasons but is scouting for an alliance with a company with deepsea exploration and production technology. Also, the company is looking at an asset swap – getting an interest in a similar project elsewhere in the world for the possible stake sale.
The company has not set a timeline for the stake sale nor has it decided on the quantum of interest to be offloaded. The stake sale may depend on negotiations with the strategic partner and on the swap offered.
Reliance holds 90 per cent stake in KG-DWN-98/3 while Niko Resources of Canada has the remaining 10 per cent.
http://www.hindu.com/thehindu/holnus/006200804141656.htm
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