Dilip Shanghvi's Sun Oil buys out Niko Resources stake in Hazira field.

Billionaire Dilip Shanghvi's Sun Oil and Natural Gas has bought a 33.3% stake in the Hazira oil and gas field from Canada's Niko Resources Ltd. and is in talks to buy the rest from Gujarat State Petroleum Corp. Ltd. (GSPC), two officials aware of the development said.

The deal value, however, could not be ascertained. Niko has operated the field for 22 years.

Sun Oil and Natural Gas is a unit of Shanghvi's Sun Petrochemicals Pvt. Ltd. while GSPC is 87% owned by the Gujarat government. The Hazira field is part of 16 hydrocarbon assets in Gujarat's Cambay basin where GSPC holds stakes.

“Niko Resources has sold its stake to Sun Oil and Natural Gas. If GSPC decides to sell its stake to Sun too, then Sun will be the 100% operator of the field,” said an official aware of the development, one of the two cited earlier. He spoke on condition of anonymity as he is not allowed to speak to reporters.

Niko Resources and Sun Oil and Natural Gas did not reply to questions emailed recently.

On 22 November, Mint had reported that Sun Oil was in talks with Niko Resources and GSPC to acquire their stakes.

LIVEMINT