BP likely to divest some of its assets to Reliance Industries

Sept. 29, 2011 - PRLog -- London based energy major BP Plc is likely to engage in a discussion with its Indian business partner, Mukesh Ambani led Reliance Industries Limited (RIL), as it looks to divest some of its assets in Europe and North America to Reliance Industries in an effort to deepen its partnership with India's largest private sector company. BP’s CEO Bob Dudley, on his two day visit to India, stated that BP is looking to manage its portfolio with more divestments and for this, the company plans to include RIL in some divestments in the gas value chain. From developing gas to potentially importing LNG, Bob Dudley suggested many likely processes which can work out outside India for RIL to help bring energy into India.

Earlier in February, BP entered into a deal with RIL, taking a 30 per cent stake in 23 oil and gas production sharing contracts (PSC) that RIL operates in India, including the much acclaimed KG - D6 block off the east coast of Andhra Pradesh, and the formation of a 50:50 joint venture between the two companies for the sourcing and marketing of gas in India. The $7.2 billion deal was completed last month and presently, RIL and BP are chalking out plans to uplift production volumes from RIL’s KG-D6 block.  

Bob Dudley expressed that the alliance with Reliance is likely to render fruitful results and there is a great future working in close association with the Indian energy giant. He noted that if the gas prices are allowed to rise to make deep-sea projects viable, India stands to harness many opportunities and growth in the E&P sector.

On KG-D6 block, Dudley said that Reliance had done a ‘fantastic’ job at the D-6 block, and BP would enhance it with its deep-sea exploration expertise. BP, he noted, would also help accelerate and re-prioritise exploration for Reliance to a large extent. Increasing output from Reliance's ‘golden’ D-6 block, would be the top priority, alongside increasing output from satellite fields and other blocks off the Orissa coast, Dudley said.