Shell may offer $6.7 bn for 30% stake in RIL's D-6 block

Royal Dutch Shell is believed to be considering a bid to acquire up to 30% stake in Reliance Industries’ (RIL’s) discovered gas block in the Krishna-Godavari basin. Shell’s bid could be around $6.7 billion. This will value RIL’s D-6 block, with reserves of 14 trillion cubic feet (tcf) of gas, at over $22 billion, however RIL strongly denied the rumours.

Total of France, ENI of Italy and Brazil’s Petrobras have also shown interest in the D-6 block, which is set to commence commercial operations in a couple of months. BG and Exxon officials declined to comment on any interest in the KG basin block.

Read more in The Economic Times article.

Essar unit buys 50% stake in Kenyan refinery

Essar Energy Overseas, a subsidiary of Essar Oil, has entered into an agreement to acquire 50% stake in Kenya Petroleum Refineries (KPRL), a four million metric tonne per annum (MMTPA) refinery, in Mombasa, Kenya.This will be Essar Oil's first international acquisition in the refining sector.The government of Kenya holds the remaining 50% in KPRL. The company has not disclosed financial details of the deal.Essar already has three exploration and production blocks in Madagascar and one in Nigeria.

The Mombasa refinery is planned to be upgraded by adding secondary units at a cost of $400- 450 million. The government of Kenya and Essar Energy Overseas will share the cost of upgrading the refinery.

Essar will acquire the KRPL stake from existing shareholders - The Shell Petroleum Company, Chevron Global Energy Inc and BP Africa. Subject to certain conditions, the acquisition is expected to be completed in early 2008