BP expands presence in India, partners with Reliance

BP will partner with Reliance Industries Ltd. (RIL) in a US$7.2 billion deal which will give BP a 30% stake in each of the 23 oil and gas blocks owned by RIL. Also part of the deal is a 50-50 joint venture for outsourcing and marketing of gas in India. The value of the investment could rise to US$20 billion, with future performance payments of up to US$1.8 billion. The blocks are approximately 270,000 sq km and are responsible for producing 30% of India’s total consumption of gas. BP has a history of partnering with Reliance and other Indian companies. They are partners on the D-17 deep water block over the past three years. BP has also partnered with Tata on a solar joint venture. BP’s Chief Executive, Bob Dudley, said “There is a shift in terms of energy demand patterns and BP wants to be a part of it. India is about to get much more important for us.” (February 22, 2011)