The BG group, formerly known as British Gas, is planning to exit from the CB-OS/1 exploration block in Cambay offshore.

The company, among the country's largest foreign investors in the oil exploration sector, is scouting for a buyer for its 62.64 per cent stake in the block. BG acquired its interest in the block following its $350 million acquisition of Enron Oil & Gas India from Enron Corp.

The assets included 30 per cent interest in the Tapti gas field and the Panna-Mukta oil and gas fields, and a 62.64 per cent interest in the CB-OS/1 exploration licence.

The acquired company is called BG Exploration & Production India, and its other partners are Hindustan Oil Exploration Ltd, Oil and Natural Gas Corporation and Tata Petrodyne. Hindustan Oil Exploration Ltd has a stake of 17.36 per cent, while the other two have 10 per cent each.

Sources close to BG said the company had informed the petroleum ministry about its decision to relinquish part of its equity in the Cambay block. BG's public relations agency did not comment on the issue.

The recent offshore gas discoveries by Reliance Industries and ONGC have put India on the global oil exploration map. In fact, the BG Plc board, currently in India, is taking a fresh look at its investments in Mumbai.

BG has invested $500 million in India and is planning to double it. Following financial consolidation in 1999, the company is realigning its operations to be a major player in gas and is moving away from oil. It may completely or partly divest its 16.67 per cent stake in the Kashagan oil field in Russia to ONGC.

BG has major shareholdings in two gas distribution companies in India: Gujarat Gas Company, in which it has a 65 per cent stake, and Mahanagar Gas, in which it has 49.75 per cent stake. BG has also proposed to set up a liquefied natural gas import-handling terminal at Pipavav in Gujarat.