Reliance Industries and British energy giant BP Plc will acquire their cash-strapped partner Niko Resources' 10% stake in gas discovery block NEC - 25 in the Bay of Bengal.
In mid-2015, Niko had chosen to withdraw from the NEC-25 block and relinquish its interest to the remaining stakeholders. RIL is the operator of the block with 60% interest while BP of the UK has the remaining 30 per cent stake.
"The application for assignment of Niko's PI (participating interest) to BP and RIL has been submitted and the same is awaiting Government of India approval," RIL stated in its notes to 2016-17 earnings last week. Niko's 10 per cent interest will be split between RIL and BP in proportion to their equity stake.
Gas discoveries in North-East Coast block NEC-0SN-97/1 (NEC-25) hold recoverable reserves of 1.032 trillion cubic feet.
The Canadian company has been facing cash problems and had even put up for sale its interest in NEC-25 as well as 10% stake in RIL's Krishna Godavari basin oil and gas producing block KG-DWN-98/3 or KG-D6. It has not been able to find a buyer though.
RIL also stated that the block oversight panel, called Management Committee (MC), has reviewed the declaration of commerciality (DoC) of gas find D-32 in the block. agencies.
News Source : Economic times