Reliance Industries completes sale of 25% stake in Yemen oil block to Medco Energi
Reliance Industries would get another USD 5 million if the block produces 10,000 barrels of oil per day. The block currently produces between 6,000 bpd and 6,500 bpd.
A 20 year construction contract was granted over the block by the Yemeni government in 2005 which the joint venture can apply to have extended for a further five years after 2025.
After the sale, RIL is left with interest in block 34 and 37 in eastern Yemen where is is investing USD 66 million with its patner Hood.
Reliance Industries had in July sold its 80 per cent interest in Rovi and Sarta onland blocks in northern Iraq to US oil behemoth Chevron Corp for a reported USD 200 million.
The exits are part of the company's overseas asset restructuring wherein it is cutting exposure in exploration blocks to focus on producing properties.
After the exit from Kurdistan and Yemen, RIL now is left with a portfolio of 10 overseas oil and gas assets including two each in Peru, Yemen, Oman and Colombia and one each in East Timor and Australia.
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