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BP and Reliance to invest $5 billion in India

Staff writer ▼ | February 19, 2013
Bob Dudley, CEO of BP Group and Mukesh Ambani, chairman and managing director of Reliance Industries, plan to invest $5 billion into India's gas markets.
India Gas
India GasBob Dudley, CEO of BP Group and Mukesh Ambani, chairman and managing director of Reliance Industries, plan to invest $5 billion into India's gas markets.


Two CEOs met with the Indian Minister of Petroleum and Natural Gas Veerappa Moily in Delhi, discussing their joint future plans in India, including the KG D6 block enhancement plan designed to increase production from the block.

Under the KG D6 block enhancement plan, BP Group and Reliance Industries are planning to invest in a series of projects to develop around four trillion cubic feet of discovered natural gas resources from the block. At current international liquefied natural gas (LNG) prices, it would cost more than $50 billion to import this volume of gas into India. This plan, when implemented, would entail a potential total investment in excess of $5 billion over the next three to five years.

"BP is already the largest single British investor in India and the decision to join forces with Reliance Industries to invest $5 billion in the next few years into India's gas markets reinforces how two of Britain's and India's leading companies can work together to invest in and supply the energy needs of the future, creating jobs and boosting prosperity," said British Prime Minister David Cameron.

"Gas from these projects will deliver energy to millions of Indians and would significantly help India in reducing import dependence. My ministry is committed to provide necessary support to promote such investment in the domestic Oil & Gas sector. We will do the needful to fast track these projects and help them attain economic viability," said Veerappa Moily, Minister of Petroleum and Natural Gas, Government of India.

Welcoming the Minister's statement, both Ambani and Dudley agreed to accelerate the pace of exploration and development activities as soon as necessary approvals are received. In a partnership with RIL in 2011, BP took a 30% stake in multiple oil and gas blocks in India, including the producing KG D6 block and the formation of a 50:50 joint venture to source and market gas in India – India Gas Solutions Private Limited.


 

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