Looking at the level of complex operational expertise needed for deep water drilling at the KG basin D6 block, Reliance Industries may get into a strategic partnership with a foreign company. The company might bring in a foreign partner for deepwater exploration in the D-6 block Industry sources said that RIL might make this long-term strategic move and is expected to be talking to several players for divesting up to 10 per cent stake in the block. The partners could be among the global energy giants like ExxonMobil, Shell, BP, Total and Petrobras, as these are the companies with required expertise, sources said. The talks are on with most of the big global energy exploration and production players, they added. RIL was recently in talks with global investment banking giant Goldman Sachs which is one of the key consultants for the deal. RIL is also sharing data with the prospective partners to reach a valuation for the deal.

In Paris, Royal Dutch Shell Plc said it was in talks with Reliance about taking a stake in that company’s D6 block in the Krishna Godavari basin. “They’ve been remarkably successful in the development of the block so far and I think the growth of the Indian gas market is obviously going to be important for the future,” Malcolm Brinded, SHELL’S head of exploration and production, told Reuters. When contacted, an RIL spokesperson, however, declined to comment on the matter. Currently, RIL holds 90 per cent stake in this block, while another 10 per cent is with Nikko Resources. Sources said the level of divestment has not been finalised as yet, but it could be for up to 10 per cent, adding that the valuation figure was yet to be arrived for the deal. Reliance and its 10 per cent Canadian partner Niko Resources in the country’s first round of international bidding of oil and gas blocks in 1999.

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