BP, Reliance in US$7.2 billion alliance

British oil major BP is set to vastly expand its presence in India, in a partnership with Reliance Industries Ltd. (RIL) worth up to US$20 billion. BP will take a 30% stake in each of the 23 oil and gas blocks belonging to RIL for US$7.2 billion, the firms announced at a press conference in London. The partnership also includes a 50-50 joint venture for the outsourcing and marketing of gas in India and, potentially, creating infrastructure for receiving, transporting and marketing natural gas. Future performance payments of up to US$1.8 billion and other payments could raise the total value of the investment to US$20 billion. (February 22, 2011)