Mumbai, Aug. 30: Reliance Industries (RIL) today announced that it had completed the sale of a 30 per cent stake in 21 oil and gas blocks in the country to BP Plc.
The deal was struck in February and was cleared by the Centre on August 9.
RIL will get $7.2 billion for the stake sale in 21 blocks and could get an additional $1.2 billion as performance payments based on exploration success resulting in the development of commercial deliveries.
Reliance has already received $2 billion from BP. The rest is expected to flow in over a period of time, sources said. Some reports have said that RIL will receive the remaining amount by the end of this month.
An RIL statement said the two companies would also form a 50:50 joint venture for the sourcing and marketing of gas in India. This is expected to accelerate the creation of infrastructure for receiving, transporting and marketing natural gas.
With the completion of the stake sale, the two partners will operate across the gas value chain in India from exploration and production to distribution and marketing.
The government had stalled approval for the stake sale in two blocks because of certain procedural constraints. RIL and the Centre are trying to sort out the glitches and a decision on them is expected at a later date. The value of these two blocks is estimated in the agreement at $2.2 million.
"The alliance with BP will boost our efforts to realise the true potential of India's hydrocarbon reserves. The globally renowned expertise of BP and the in-depth domestic experience of Reliance make for a formidable alliance which will deliver unparalleled value for the country in its pursuit of energy security," said RIL chairman and managing director Mukesh Ambani.
Bob Dudley, BP's group chief executive, said the investment in these blocks was in sync with its strategy of creating long-term value by forming alliances with strong national partners, gaining material positions in significant hydrocarbon basins and increasing the exposure to growing energy markets.
The announcement came on a day when the RIL scrip surged nearly 4 per cent to Rs 781.50.
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