British Petroleum Buys 30% Stake in Reliance Industries' Oil

And Gas Blocks

British Petroleum Global (BP) has bought 30% stake in Reliance Industries Limited (RIL) 23
oil and gas blocks including D-6 block off the east coast of India, for $7.2 Bn .

Future performance payments up to $1.8 Bn could be paid by BP based on exploration success resulting
in development of commercial discoveries. The two will also enter into a 50:50 joint venture for sourcing
and marketing of gas. BP's combined investment including payments to Reliance could  amount to $20
Bn.
The partnership will combine BP's deepwater exploration and development capabilities with Reliance's
project management and operations expertise. 
The 23 oil and gas blocks together cover approximately 2,70,000 sq km. Reliance will continue to be the
operator under the production sharing contracts.
Transaction Reference: Press Release

TRANSACTION NOTE               

RIL currently controls 29 exploration and production blocks in India.  The 23 blocks lie in water depths
ranging from 400 to 3000 metres and produce about 1.8 bn cubic feet of gas per day, over 30% of India’s
total consumption and over 40% India's total production.

In 2002, Reliance with Niko Resources found natural gas in the KG Basin off the coast of Andhra
Pradesh near Vishakapatnam. In 2009 RIL commenced natural gas production from its D-6 block in KG
basin which is 7 trillion cubic feet in size and has around 1.2 billion barrels (165 million tonnes) of crude
oil, but only 5 trillion cubic feet are extractable.
London-based BP is into exploration, production, refining, trading  and distribution of energy. It has
operations in more than 100 countries, produces around 3.8 mn barrels of oil equivalent per day and has
22,400 service stations worldwide.

BP already has a presence in India, including 50% interest in a deepwater block called D-17, which it has
been working on with Reliance Industries since late 2008.
Reliance Industries runs the world's biggest refining complex at Jamnagar with two plants of combined
capacity of around 1.24 Mn barrels per day. It has also been buying up shale gas assets in US and has
interests in petrochemicals and retail
It has also diversified into telecom by acquiring Infotel Broadband in a $1 Bn deal in 2010.
Also, in August 2010, RIL acquired a stake in hotel chain EIH Ltd, which runs the luxury
Oberoi and Trident hotels. 
Bottom of Form

DEAL TRACKER
 
FOR
Date Type Sub Type Buyer Size
Reliance Industries - Oil & Gas Blocks - British Petroleum
22/02/11  M&A  Acquisition  British Petroleum Global  7200.00