RIL may change exploration strategy

8220;Now that we are off this project D6 so we have to focus our efforts on other areas 8230; We may change our strategy to drive it in a different direction,8221; P.M.S. Prasad said.

He said in the next six months Reliance will drill wells at blocks in Oman,Kurdistan and East Timor.

The success of D6 established Reliance,also the owner of the world8217;s biggest oil refining complex,as a deepwater player and now it is keen to buy acreages in the Gulf of Mexico and Brazil.

Reliance is looking at selling a stake in 6 of its 14 overseas blocks. Prasad said many global firms have shown interest in buying stake in blocks in Oman,Kurdistan and South America.

Reliance holds a 90 per cent stake in the D6 block while Canadian firm Niko Resources owns the rest.

Reliance Industries,controlled by billionaire Mukesh Ambani,and Reliance Natural,headed by estranged younger brother Anil,have been contesting details in a supply contract agreed when the Reliance empire split in 2005.

It is currently producing about 60 per cent of its 60 million standard cubic metres a mmscmd capacity,leading to deferment of its 100 million monthly revenue from May and delayed peak gas output of 80 mmscmd by at least a quarter to April,Prasad said. The government has select customers only for 40 mmscmd. 8220;We hadn8217;t expected we8217;d be held up from producing,8221; he said.

Reliance can only sell gas to government-appointed users at a base price of 4.2 per million British thermal unit.

Also the government has withdrawn seven year tax incentives,promised at the time of the block was awarded in 2000.

8220;This is not the environment that we had anticipated. The interpretation of the regime is not as that was when block was awarded 8230; We want to spread our risk,we spend too much capital and time into one asset,8221; Prasad said.