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Reliance to acquire oil blocks from Tullow

Reliance Industries Ltd, which is exploring oil in 18 blocks with a total acreage of about 170,000 sq km, will acquire five blocks from Tullow Oil of Ireland, a company spokesman said.

"We are acquiring an interest of up to 50 per cent in five blocks from Tullow of UK subject to government approval," a Reliance spokesman told Reuters.

The spokesman did not reveal the cost of the acquisition but said it was a part of the firm's overall estimate for its exploration and production expenditure in coming years.

"We have estimated an initial capital expenditure of $300 million over the next three years," he said.

Three of the blocks being acquired are in Kutch offshore, one in Cambay and one in the Krishna Godavari region.

The company, which operates India's largest private refinery with an annual capacity of 27 million tonnes and also has petrochemical plants, has been bidding for blocks offered for exploration by the Indian government.

It was also awarded four blocks under the second round of India's New Exploration Licensing Policy which offered attractive tax concessions to attract private capital to explore oil in the energy-deficient country.

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