<p>The deal will give the London-based company a 30 per cent stake in production from 23 oil and gas blocks operated by RIL in the country. <br /><br />Apart from the aggregate consideration, BP will also pay RIL for the future performance of up to $1.8 billion based on exploration success that result in development of commercial discoveries, taking the total deal value to $ 9 billion or Rs 40,000 crore.<br /><br />The 23 blocks of RIL, which also include the producing KG-D6 block, together cover about 270,000 square kilometres, making the partnership “India’s largest private sector holder of exploration acreage.” <br /><br />RIL Chairman & Managing Director Mukesh Ambani and BP Group Chief Executive Robert Dudley on Monday signed the relationship framework and transactional agreements in London.<br /><br />“This is the single largest FDI in the history of India,” Ambani told reporters in London hoping the world’s “best finder of hydrocarbon in deepwater” will help his firm reverse the sagging output from Krishna Godavari-D6 gas fields.<br /><br /> “This partnership combines the skills of both companies and will be focused on finding more hydrocarbons in the deep water blocks of India and significantly contribute to India’s energy security,” he added.<br /><br />As part of the partnership across the full value chain comprising 23 oil and gas production sharing contracts in India, RIL and BP will forge a 50:50 joint venture (JV) for the sourcing and marketing of gas in India, stated a press release.<br /><br />The JV will also endeavour to accelerate the creation of infrastructure for receiving, transporting and marketing of natural gas in India.<br /><br /> The partnership will combine BP’s world-class deepwater exploration and development capabilities with Reliance’s project management and operations expertise, an observer said. <br /><br />For BP, Reliance is a natural partner in India, given its strong position in the Indian market. <br /><br />“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 BP Chairman Carl-Henric Svanberg. <br /><br />Though the news on the deal was made public after the closure of the stock markets, punters did had an inkling of the development as the index-heavy RIL stock jumped 1.90 per cent on Monday to close at Rs 955.</p>
<p>The deal will give the London-based company a 30 per cent stake in production from 23 oil and gas blocks operated by RIL in the country. <br /><br />Apart from the aggregate consideration, BP will also pay RIL for the future performance of up to $1.8 billion based on exploration success that result in development of commercial discoveries, taking the total deal value to $ 9 billion or Rs 40,000 crore.<br /><br />The 23 blocks of RIL, which also include the producing KG-D6 block, together cover about 270,000 square kilometres, making the partnership “India’s largest private sector holder of exploration acreage.” <br /><br />RIL Chairman & Managing Director Mukesh Ambani and BP Group Chief Executive Robert Dudley on Monday signed the relationship framework and transactional agreements in London.<br /><br />“This is the single largest FDI in the history of India,” Ambani told reporters in London hoping the world’s “best finder of hydrocarbon in deepwater” will help his firm reverse the sagging output from Krishna Godavari-D6 gas fields.<br /><br /> “This partnership combines the skills of both companies and will be focused on finding more hydrocarbons in the deep water blocks of India and significantly contribute to India’s energy security,” he added.<br /><br />As part of the partnership across the full value chain comprising 23 oil and gas production sharing contracts in India, RIL and BP will forge a 50:50 joint venture (JV) for the sourcing and marketing of gas in India, stated a press release.<br /><br />The JV will also endeavour to accelerate the creation of infrastructure for receiving, transporting and marketing of natural gas in India.<br /><br /> The partnership will combine BP’s world-class deepwater exploration and development capabilities with Reliance’s project management and operations expertise, an observer said. <br /><br />For BP, Reliance is a natural partner in India, given its strong position in the Indian market. <br /><br />“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 BP Chairman Carl-Henric Svanberg. <br /><br />Though the news on the deal was made public after the closure of the stock markets, punters did had an inkling of the development as the index-heavy RIL stock jumped 1.90 per cent on Monday to close at Rs 955.</p>
