Reliance Industries set to buy majority stake in Peru oil block

Reliance Industries Ltd (RIL) is set to acquire majority stake in an oil block in Peru. The company is understood to have recently inked an agreement with Pan Andean for acquiring stake in Block 141 in Peru. The company is presently seeking necessary approvals from authorities in Peru. Pan Andean Resources explores and produces oil and gas in South America and the Gulf of Mexico.

Indications are that RIL is likely to acquire 90 per cent stake. Block 141 in the Lake Titicaca area of Peru is a large oil exploration play. RIL has been pursuing contracts for farm-in activities in two oil blocks in Peru. (Under Farm In practice, a company does not acquire the property directly, but rather develops the oil and natural gas properties by taking participating interest in the block)

Reliance already has 11 overseas oil and gas assets, with the latest being a block in Australia. With the Peru block, the number would go up to 12. The company is further looking at opportunities in Africa, Latin America and West Asia.