Reliance not to transfer stake in gas block to subsidiary

September 1st, 2008 - 3:35 pm ICT by IANS  

New Delhi, Sep 1 (IANS) Reliance Industries Ltd Monday announced it has discarded plans to transfer a majority stake in a deepwater gas block in the Krishna Godavari basin to a fully-owned subsidiary.In a statement, RIL said it had earlier applied to assign part of its interest in the D6 block in the Krishna Godavari basin to a 100 percent owned subsidiary “in order to retain flexibility for raising finances for the project”.

But, RIL now says, it has withdrawn this plan as it has raised the necessary finances.

“Our projects are nearing completion and we have successfully raised the finance and so do not wish to pursue the application seeking approval to assign our participating interest to our 100 percent owned subsidiaries and have since withdrawn it,” the company statement said.

RIL holds a 90 percent stake in the D-6 block, while Canadian oil major Niko Resources owns the rest of the gas-rich asset.

The statement dismissed media reports that the proposed transfer was to entities partly owned by two top company executives as “completely inaccurate, misleading and mischievous”.

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