New Delhi, April 30 (PTI): Reliance Industries (RIL) has acquired a 90 per cent stake in an oil block in Peru.

Reliance bought the stake in Block 141 of Peru’s High Plateau from Pan Andean Resources, P.M.S. Prasad, CEO and president (oil and gas), said today. Pan Andean will hold the remaining 10 per cent stake.

According to the deal, RIL will bear all exploration costs for commercial discovery. Following a discovery of an agreed size, Pan Andean will reimburse RIL for its share of the exploration costs.

Under the agreement, Pan Andean also has the right to increase its stake to a maximum of 30 per cent, and the company will compensate RIL for that proportion of its exploration expense on the block. RIL believes the block contains potentially valuable structures.

Prasad said RIL was looking at oil blocks in Latin America, particularly in the oil belt. In the Peru block, drilling and other work may involve an investment in excess of $40 million.