UK-based Hardy Oil and Gas is in negotiations to acquire Reliance Industries’ (RIL) complete 90% interest and operatorship in gas discovery block GS-01 on the western offshore in Gujarat, India.

Hardy said in its half-yearly operations report: "We have a clear plan to acquire a further interest in, and operatorship of, our GS-01 asset."

"A number of high level meetings were held with director general hydrocarbons (DGH) and ministry representatives to facilitate the timely conclusion to Hardy’s acquisition of Reliance’s 90% interest and operatorship.

"General commercial terms have been agreed and a draft farm-out agreement is under review by both parties."

"General commercial terms have been agreed and a draft farm-out agreement is under review by both parties."

RIL noted that the reserves that have been discovered so far are not economically significant and wants to exit the Gujarat-Saurashtra offshore basin block.

The companies have advised the Government of India (GoI) to close the matter of possible liquidated damages associated with unfinished minimum work programme (UMWP), which is being considered by it since 2009 before concluding the acquisition process.

The GS-01 licence is located in the Gujarat-Saurashtra offshore basin off the west coast of India, with water depths varying between 80m and 150m.

At present, Hardy holds a 10% interest in the block where the gas discovery Dhirubhai-33 (D-33) was made in 2007.

In 2012, a FDP was submitted to the GoI for review and approval of the Dhirubhai 33 discovery.