Mukesh Ambani?s Reliance Industries Limited (RIL) along with China National Petroleum Corporation and Argentina?s Pluspetrol have won a gas block in Peru in Latin America.
The consortium of Reliance Exploration and Production DMCC, a fully-owned subsidiary of Reliance Industries, along with CNPC and Pluspetrol have jointly secured the rights to explore for gas in Block 155, in the southern highland department of Puno, next to the border with Bolivia, industry sources said.
Alongside, Jindal Steel and Power Ltd teamed with up Enigma Oil and Gas Exploration (Pty) Ltd to win onshore blocks 147, 159 and 153 in Peru?s 2008 bidding round that auctioned 17 new oil and gas blocks.
Reliance-CNPC-Pluspetrol offered royalty of 24.58 % to Peruvian government while Jinda-Enigma offered 30.02 to 32.03 % royalty, sources said. Peru had originally offered 22 oil and gas lots, but received bids for only 17. Reliance has, since April this year, steadily increased its presence in the Latin American nation. On June 29, it acquired 10 % stake in Lot 39 in northern Peru from Burligton Resources Inc. In May, it had teamed up with Woodside Petroleum to acquire 50 % in Block 108 in Peru from Pluspetrol Energy SA. Of the 50 % stake acquired, Reliance got 30 %, while Woodside Petroleum got 20%. Pluspetrol Energy will retain the remaining 50 % stake.
The company also acquired 90 % stake in Block 141 in Peru from Pan Andean Resources in April this year. Under the terms for Block 141, Pan Andean will dilute its interest in Block 141 to 10%, in return for which Reliance Industries will incur all exploration costs through commercial discovery. Following a commercial discovery of an agreed size, Pan Andean will reimburse Reliance for its share of the exploration costs.