British Petroleum is all set to take over 30% stake in 23 oil and gas blocks of Reliance Industries Limited. The deal would fetch Reliance Industries an aggregate of USD 7.2 billion.
The petroleum majors have entered into a 50-50 joint venture for sourcing and marketing of gas. The jiont venture is also aimed to create infrastructure for gas transportation.
British Petroleum has said that its total investments in the joint venture could go up to USD 20 billion and the company expects future performance payments to the tune of USD 1.8 billion.
“This partnership meets BP’s strategy of forming alliances with strong national partners, taking material positions in significant hydrocarbon basins and increasing our exposure to growing energy markets,” said Mr. Carl-Henric Svanberg, Chairman of BP in a press release.
Reliance Industries will continue being the operator in all 23 blocks, a company spokesperson stated.
The total gas output of RIL’s 23 blocks is pegged to be at somewhere around 1.8 billion cu ft per day.
The 23 oil and gas blocks together cover approximately 270,000 square kilometres. This will make the partnership India’s largest private sector holder of exploration acreage.
Source: www.moneycontrol.com
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DENIP Consultants Pvt Ltd
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