RIL-Hardy Oil to relinquish NEC blocks: Sources

Reliance Industries (RIL) and Hardy Oil are likely to  relinquish deep water block NEC 2002/1. Sources in the know inform that the Directorate General of Hydrocarbons (DGH) has also agreed to RIL and Hardy Oil's plea.

Also, the DGH funds no financial implications over relinquishment. It is also believed that RIL-Hardy has cited unfavourable geological conditions for this decision. While RIL has 90% stake in NEC deepwater blocks, Hardy has 10%.

Five months ago, On RIL's proposal Hardy Oil  had agreed to relinquish an offshore natural gas field after tests showed it isn’t viable.

RIL, the operator of the blocks has proposed to return the drilling license because the block's gas potential is low and further exploration isn't needed, Hardy had aid in a regulatory filing in London on April 23.