UK’s Hardy Oil & Gas plc on Thursday said it is in talks to acquire Reliance Industries’ 90 per cent stake in a gas discovery block off the Gujarat coast. RIL wants to exit Gujarat-Saurashtra offshore basin block (GS-01) as it feels that reserves discovered so far are not economically significant. “We have a clear plan to acquire a further interest in, and operatorship of, our GS-01 asset,” Hardy said.
It said the completion of this process was pending the resolution of a long-standing liability associated with unfinished minimum work programme that has been under consideration with the Centre since 2009. “A number of high level meetings were held with DGH and (Oil) Ministry representatives to facilitate timely conclusion of Hardy’s acquisition of Reliance’s 90 per cent interest and operatorship.
“General commercial terms have been agreed and a draft farm-out pact is under review by both parties,” it said. Hardy-Reliance have told the government the matter of possible liquidated damages associated with the two firms not completing their committed drilling programme, which is under consideration of the government since 2009, needs to be closed out prior to the conclusion of the acquisition process. “A field development plan for the Dhirubhai 33 natural gas discovery was submitted to the government for review and approval in 2012. “The development plan provides for several dry tree wells, an unmanned platform, multiphase pipeline to shore and onshore processing and export facilities,” it said. Hardy currently owns 10 per cent interest in the block where a gas discovery, (Dhirubhai-33), was made in 2007. The well that discovered the reserves flowed 18.6 million standard cubic feet per day of gas and 415 barrels of condensate during tests.