Volvo Cars details more of the V60 diesel plug-in hybrid; 3 driver-selected driving modes
SAE supporting Michigan Academy for Green Mobility Alliance

Reliance Industries Limited and BP form strategic oil and gas partnership in India with focus on deepwater exploration; BP paying $7.2B

Map of deal interests. Click to enlarge.

Reliance Industries Limited and BP have a strategic partnership across the full value chain in India. The partnership will see BP taking a 30% stake in oil and gas production sharing contracts that Reliance operates in India, including the producing KG D6 block, and the formation of a 50:50 joint venture between the two companies for the sourcing and marketing of gas in India.

The joint venture will also endeavour to accelerate the creation of infrastructure for receiving, transporting and marketing of natural gas in India.

The partnership will combine BP’s deepwater exploration and development capabilities with Reliance’s project management and operations expertise.

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.

—Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited

BP will pay Reliance Industries Limited an aggregate consideration of US$7.2 billion, and completion adjustments, for the interests to be acquired in the 23 production sharing contracts. Future performance payments of up to US$1.8 billion could be paid based on exploration success that results in development of commercial discoveries. These payments and combined investment could amount to US$20 billion.

The transaction constitutes one of the largest foreign direct investments into India.

The 23 oil and gas blocks together cover approximately 270,000 square kilometer. This will make the partnership India’s largest private sector holder of exploration acreage.

Reliance will continue to be the operator under the production sharing contracts, whose blocks lie in water depths ranging from 400 to more than 3,000 metres. These currently produce about 1.8 billion cubic feet of gas per day (bcf/d)—more 30% of India’s total consumption—and more than 40% of India’s total production.

Completion of the transactions is subject to Indian regulatory approvals and other customary conditions.

BP has been working with Reliance since December 2008 on the D-17 deepwater block in the Krishna Godavari (KG) basin on the east coast of India. BP, with a 50% interest, operates the block and Reliance holds the remaining interest.

According to BP’s Energy Outlook 2030, energy consumption in India has grown by 190% over the past 20 years and is likely to grow by 115% over the next 20 years, a rate of over 4% per annum. Gas is expected to be the fastest growing fossil fuel, with demand growing at a rate of nearly 5% a year between 2010 and 2030. India’s gas consumption was 5.0 bcf/d in 2009 and is estimated to have been 6.1 bcf/d in 2010 (comprising 4.9 bcf/d production 1.2 bcf/d LNG imports). Total Indian gas consumption is projected to grow to 12.5 bcf/d in 2025, and exceed 15 bcf/d in 2030.

Reliance Industries Limited (RIL) is India’s largest private sector company on all major financial parameters with a turnover of Rs 2,00,400 crore (US$44.6 billion), cash profit of Rs 27,933 crore (US$6.2 billion), net profit of Rs 16,236 crore (US$3.6 billion) and net worth of Rs 1,37,171 crore (US$30.6 billion) as of 31 March 2010.

Comments

ejj

Yeah, for the rest of the world it's Drill Baby Drill with no end in sight... but! but! it's America that is evil!

Verify your Comment

Previewing your Comment

This is only a preview. Your comment has not yet been posted.

Your comment could not be posted. Error type:
Your comment has been posted. Post another comment

The letters and numbers you entered did not match the image. Please try again.

As a final step before posting your comment, enter the letters and numbers you see in the image below. This prevents automated programs from posting comments.

Having trouble reading this image? View an alternate.

Post a comment

Your Information

(Name is required. Email address will not be displayed with the comment.)

salon-svadebny.com.ua

best-cooler.reviews

https://steroid.in.ua