Sunday, March 27 2005 15:36 Hrs (IST) - World Time -

New Delhi: Reliance Industries Ltd (RIL) will take over Hardy Exploration and Production (India) Inc's 10 per cent stake in eight oil and gas exploration blocks, the two firms had won together two years ago.

The takeover by Reliance would allow HEPI to exit from the eight blocks that were awarded under third round of New Exploration Licensing Policy (NELP). Reliance currently holds 90 per cent stake in them.

A Reliance Industries Ltd spokesperson said from Mumbai, "RIL plans to acquire Hardy's participating interest in some of the NELP III Blocks."

The eight blocks are: KG-OSN-2001/1; KG-OSN-2001/2; KK-DWN-2001/1; KK-DWN-2001/2; CY-DWN-2001/2; CY-PR-DWN-2001/3; PR-DWN-2001/4 and CY-PR-DWN-2001/1.

The production sharing contracts (PSC) for NELP-III were assigned in February 2003 and Phase-I exploration for deepwater blocks expires in 2007 and that for shallow water in 2006.

Reliance will have to undertake all obligations of HEPI to ensure that the contractual obligation of the contractor in no way gets diluted under the PSC.

Reliance would have to furnish necessary guarantees in line with the PSCs, sources said.

After comparing the work done in the blocks with the minimum work commitment, it was found that the operators had fulfilled the commitment of reprocessing, 2D seismic survey for seven blocks and 3D survey in one block.