BP to aid Reliance in oil and gas field development at KG-D6
06 July 2011
Europe's second-largest oil company, BP Plc, is looking to help Reliance Industries find more oil and gas to boost output at the showpiece KG-D6 fields after clearance of its its $7.2-billion deal, the nation's largest foreign direct investment ever.
Reliance Industries has been indicted by CAG for production shortfalls at KG-D6 fields.
Under the deal, BP plans to acquire a 30-per cent stake in 23 oil and gas blocks of Reliance Industries, including the eastern offshore Krishna Godavari basin KG-D6 fields.
According to a BP official, the company believed, the partnership would combine BP's world-class deepwater exploration and development capabilities with Reliance's project management and operations expertise to help India in its quest for energy security.
On 25 February, Reliance had made an application seeking government approval to transfer stake to BP. It is still awaiting the approval.
The official added that BP had submitted the application in late February to take a 30- per cent participating interest in 23 blocks allotted to Reliance.