RIL completes $7.2 b BP deal

RIL said the completion of the deal has paved way for commencement of its strategic alliance in the country with BP, which envisages from exploration and production to distribution and marketing.

Both companies will also form a 50:50 joint venture for the sourcing and marketing of gas in India which will also accelerate the creation of infrastructure for receiving, transporting and marketing natural gas.

RIL will get US$7.2 billion for the stake sale in 21 blocks and could get further US$1.8 billion as performance payments based on exploration success resulting into development of commercial deliveries. Regarding two remaining blocks, valued at about US$2.2 million, RIL said discussions were continuing with the government and a decision was expected “at a later date.”

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