Reliance Industries withdrew from Offshore Oil Exploration Block in the Sea of Oman

Reliance Industries in August 2011 withdrew from an offshore oil exploration block in the Sea of Oman. Block 18, a 21,140 sq km concession located off the Batinah coast, was relinquished by the RIL's wholly-owned Dubai-based subsidiary, Reliance Exploration and Production DMCC.

RIL’s decision to withdraw from the oil exploration block followed an exploratory drilling campaign that failed to unearth any significant prospects. Reliance had earlier inked a deepwater Exploration and Production Sharing Agreement with the Oman government for Block 18 in the Sohar Basin in June 2005.

State-owned Oman Oil Company Exploration and Production (OOCEP), which had acquired a 30 per cent interest in Block 18 under a farm-out agreement signed in October, 2009, is unlikely to take over the concession and the Ministry of Oil and Gas is expected to remarket the block. The total expenditure incurred on Block 18, as well as another block in East Timor stood at USD 177 million.

OOCEP had also signed a Joint Operating Agreement with Reliance, which provided the basis for setting up a joint operating company to be managed by the two companies upon a commercial discovery being established in Block 18.

Reliance is currently focused on the development of its sole existing concession in Oman, Offshore Block 41, which covers an area of around 23800 sq km off the Sharqiya coast. Reliance will pursue the next phase of its exploratory plan in Block 41 only the results of 2D seismic surveys are out.

Reliance Exploration and Production DMCC's portfolio currently consists of 12 blocks spread across Oman, Yemen, Kurdistan, East Timor, Peru, Australia and Colombia.