Google Alert News - NEW DELHI: Reliance Industries Ltd has won two oil exploration blocks in Yemen, but has denied of talks to acquire Premier Oil of UK.
"Yemen has awarded onshore exploration Blocks 34 and 37," a source said.
The source, however, said Reliance was not looking at acquisition of Premier Oil of UK.
"Reliance did have a look at Premier several months ago but pulled out of talks as it did not find the company attractive at current valuations," the source said.
The Mukesh Ambani group firm has taken local company Hood Oil as partner in the two Yemen blocks, but equity structure is yet to be agreed.
Blocks 34 and 37, each measuring around 7500-sq km and located on the border with Oman, were among the seven blocks offered by Yemen in its second licensing round.
RIL, which also has exploration blocks in Oman, East Timor and Columbia, is likely to sign Production Sharing Contract (PSC) for Blocks 34 and 37 next month.
The company already partners Hood Oil in producing Block 9, where the two companies hold 25 per cent each. Calvalley Petroleum of Canada is the operator with 50 per cent stake. The block currently produces 7,500 barrels of oil per day and the output will go up to 10,000 barrels this month.
"Production is constrained by infrastructure to transport crude. Currently oil is trucked and the output will increase to 30,000 barrels per day once a pipeline is build," the source said.
Calvalley plans to lay a 250-km pipeline to evacuate crude. The pipeline construction will take four months.