BP gets stake in India's key energy blocks

08:33, February 22, 2011      

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BP Plc is paying India's Reliance Industries US$7.2 billion to take a stake in key oil and gas blocks, gaining a significant foothold in the Asian country as it continues to reposition global operations following the disastrous Gulf of Mexico spill.

The tie-up, which could eventually amount to a US$20 billion investment from BP, was announced yesterday and includes an agreement between the two companies to form a joint venture to source and market gas.

London-based BP is making the initial payment for a 30 percent stake in 23 oil and gas blocks across India covering around 270,000 square kilometers, making the partnership the country's largest private sector holder of exploration acreage.

"The partnership will combine BP's world-class deepwater exploration and development capabilities with Reliance's project management and operations expertise," the companies said in a statement after BP Chief Executive Robert Dudley and Reliance Chairman Mukesh Ambani signed the deal in London.

The deal marks another major strategic step for BP after the Gulf of Mexico oil spill last year.

Source: Shanghai Daily
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