Reliance-BP's $7.2 bn deal needs govt OK
Reliance is selling 23 oil and gas block it along with partners like Niko and Hardy had won under various rounds of New Exploration Licensing Policy (NELP) rounds since 1999.
NELP allows firms to sell or farm-out participating interest (or stakes) subject to NOC from consortium partner, an official said.
Niko has 10-15 per cent in three gas discovery blocks of Reliance including the prolific KG-D6 while Hardy has 10 per cent stake each in Krishna Godavari basin D9 and D3 blocks.
By virtue of these stakes both Niko and Hardy have pre-emption rights and so the application that Reliance will make for transferring its stake to BP will have to be accompanied by a lot of documents, primary among them being the NOC of its consortium partners, he said.
"Without NOC, the government approval cannot be given," the official said.
The application along with the requisite documents will have to be submitted to the regulator Directorate General of Hydrocarbons (DGH) who after examining will forward an in-principal approval to the Petroleum Ministry.
The official said the ministry after going through the application would approve and the file will go back to DGH.
DGH then will make an Amendment to the Production Sharing Contract which will be submitted to the ministry and
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