In order to enhance flexibility to increase finances, Reliance Industries (RIL), announced on Tuesday about it plans to transfer 80 per cent of its holding in its prolific eastern offshore D6 block to four wholly-owned subsidiaries.

According to a spokesperson of the company, “The proposal has been submitted to the regulatory authorities and approval is awaited. Reliance wants to transfer 80 per cent of its holding in D6 to four wholly-owned subsidiaries. There will be no loss of RIL shareholder value. This is common global practice and would enable the company to enhance its financial flexibility as the company builds its exploration and production portfolio.”

Currently, RIL, owned by Mukesh Ambani has 90% interest in KG-DWN-98/3 or D6 block in Krishna Godavari basin. Till date, 18 oil and as discovered have been made at the mentioned place. Niko Resources of Canada holds the rest 10%.

Directorate General of Hydrocarbons (DGH), has been asked for comments and illustrations by the Petroleum Ministry, as to where the company has assigned more than 50% in a block to its affiliates. Reliance aims at beginning the oil and gas production by next month from D6. The per day production of oil and gas according to the company should reach up to 40,00 barrels and 40 million standard cubic meters per day respectively.