{"id":277482,"date":"2011-02-22T01:24:17","date_gmt":"2011-02-22T01:24:17","guid":{"rendered":"http:\/\/www.ghanamma.net\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/"},"modified":"2011-02-22T01:24:17","modified_gmt":"2011-02-22T01:24:17","slug":"bp-in-7-2b-partnership-with-reliance","status":"publish","type":"post","link":"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/","title":{"rendered":"BP in $7.2B partnership with Reliance"},"content":{"rendered":"<p><div readability=\"84.335084324\">  <!-- start feedback link --><\/p>\n<p><!-- \/feedback link --><br \/>\n       <!-- Tracking values --><\/p>\n<p><!-- google_ad_section_start --><!--startclickprintinclude-->   <!--endclickprintinclude--> <!--startclickprintexclude--> <\/p>\n<div readability=\"8\">\n<p>By  <b>Tom Burgis<\/b> and <b>James Fontanella-Khan<\/b>, FT.com<\/p>\n<\/div>\n<p><!-- google_ad_section_end --><\/p>\n<div readability=\"79.3676148796\"><!-- google_ad_section_start --><!-- CONTENT --><!-- PURGE: \/2011\/BUSINESS\/02\/21\/bp.relaince.partnership.ft\/index.html -->  <!-- REAP --><!--startclickprintexclude--><!--===========CAPTION==========--><\/p>\n<div readability=\"10\">\n<p>Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited, addresses a press conference with BP in central London on February 21.<\/p>\n<\/div>\n<p><!--===========\/CAPTION=========--> <!--endclickprintexclude--><!-- \/REAP --><\/p>\n<div>\n<div>\n<p><b>STORY HIGHLIGHTS<\/b><\/p>\n<ul><!-- google_ad_section_start --><\/p>\n<li>BP is to make a $7.2 billion thrust into India with a stake in Reliance<\/li>\n<li>Takes a 30% stake in vast natural gas blocks controlled by Mukesh Ambani<\/li>\n<p><!-- google_ad_section_end --><\/ul>\n<\/div>\n<\/div>\n<p><!--endclickprintexclude--> <!--startclickprintinclude--> <\/p>\n<p><b>(<a href=\"http:\/\/www.ft.com\" target=\"new\" rel=\"noopener noreferrer\">FT<\/a>) <\/b> &#8212; BP is to make a $7.2bn thrust into India by taking 30 per cent stakes in vast but difficult natural gas blocks controlled by Mukesh Ambani, the country&#8217;s richest tycoon.<\/p>\n<p>The deal with Reliance Industries, potentially worth up to $20bn and subject to government approval, comes on the heels of a $16bn share swap with Rosneft, the Russian state oil company, and marks the latest stage of BP&#8217;s recovery since last year&#8217;s Gulf of Mexico disaster.<\/p>\n<p>It also represents an endorsement of the prospects for continued rapid expansion of the world&#8217;s second-fastest growing major economy.<\/p>\n<p>&#8220;This partnership will help unlock the huge potential of India&#8217;s vast but under-explored acreages,&#8221; Mr Ambani told reporters while unveiling the deal with Bob Dudley, BP chief executive, in London, ahead of a planned signing ceremony at 10 Downing Street with George Osborne, UK chancellor.<\/p>\n<p>The deal is the biggest foreign investment in Indian energy and among the largest in any sector.<\/p>\n<p>It further cements Anglo-Indian business ties, following Vodafone&#8217;s $10.7bn purchase of a 67 per cent stake in what became Vodafone Essar, India&#8217;s third biggest mobile operator, in 2007.<\/p>\n<p>Mr Ambani, whose energy interests form the backbone of a conglomerate that has made him a fortune estimated by Forbes to be the world&#8217;s fourth largest at $29bn, said BP&#8217;s technical expertise would &#8220;accelerate&#8221; exploration.<\/p>\n<p>All 23 blocks lie offshore, mainly off India&#8217;s east coast and at depths ranging from 400m to more than 3km.<\/p>\n<p>The Indian group&#8217;s current output of 1.8bn cubic feet of gas per day &#8212; 40 per cent of India&#8217;s gas production &#8212; comes from the sole block that is in production.<\/p>\n<p>BP agreed to pay an initial $7.2bn and additional performance-related payments of up $1.8bn. These payments and combined investment could amount to $20bn, the companies said.<\/p>\n<p>&#8220;Reliance is a newcomer in this upstream business so it required a more experienced partner that could provide them the technology needed to extract deepwater oil and gas,&#8221; said an analyst with a global ratings agency.<\/p>\n<p>The tie-up aims to supply the domestic market, where natural gas accounts for a small but growing share of energy consumption. BP forecasts that demand will more than double over the next 20 years.<\/p>\n<p>The courtship between the two groups goes back five years. Since 2008 BP has operated a 50-50 joint venture with Reliance developing an offshore Indian oil block.<\/p>\n<p>The blocks, covering a surface area the size of New Zealand, have an indicated resource of 15 trillion cubic feet of gas, Mr Dudley said.<\/p>\n<p>Government approval is not necessarily a formality. The deal comes shortly after the Indian government blocked London-listed miner Vedanta&#8217;s efforts to buy the Indian assets of Cairn Energy for $9.6bn. BP shares in London closed down 0.7p at 492p.<\/p>\n<p>\u00a9 The Financial Times Limited 2011<\/p>\n<p><!--endclickprintinclude--><!-- \/PURGE: \/2011\/BUSINESS\/02\/21\/bp.relaince.partnership.ft\/index.html --><!-- google_ad_section_end --><br \/>\n<!-- \/cnn_strybtmcntnt --><\/div>\n<p><!-- \/cnn_strycntnt --><!-- \/cnn_strycntntrgt --><\/div>\n<\/p>\n<p>Read the original here:<br \/>\n<a target=\"_blank\" href=\"http:\/\/rss.cnn.com\/~r\/rss\/edition_europe\/~3\/oL1Pq4Tn_0U\/index.html\" title=\"BP in $7.2B partnership with Reliance\" rel=\"noopener noreferrer\">BP in $7.2B partnership with Reliance<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p> By Tom Burgis and James Fontanella-Khan , FT.com Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited, addresses a press conference with BP in central London on February 21. <\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-277482","post","type-post","status-publish","format-standard"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.0 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>BP in $7.2B partnership with Reliance - Ghanamma.com<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"BP in $7.2B partnership with Reliance - Ghanamma.com\" \/>\n<meta name=\"twitter:description\" content=\"By Tom Burgis and James Fontanella-Khan , FT.com Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited, addresses a press conference with BP in central London on February 21.\" \/>\n<meta name=\"twitter:creator\" content=\"@ghanamma\" \/>\n<meta name=\"twitter:site\" content=\"@ghanamma\" \/>\n<meta name=\"twitter:label1\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data1\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/\"},\"author\":{\"name\":\"\",\"@id\":\"\"},\"headline\":\"BP in $7.2B partnership with Reliance\",\"datePublished\":\"2011-02-22T01:24:17+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/\"},\"wordCount\":541,\"commentCount\":0,\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/\",\"url\":\"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/\",\"name\":\"BP in $7.2B partnership with Reliance - Ghanamma.com\",\"isPartOf\":{\"@id\":\"https:\/\/www.ghanamma.com\/2011\/#website\"},\"datePublished\":\"2011-02-22T01:24:17+00:00\",\"author\":{\"@id\":\"\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/\"]}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.ghanamma.com\/2011\/#website\",\"url\":\"https:\/\/www.ghanamma.com\/2011\/\",\"name\":\"Ghanamma.com\",\"description\":\"News In Ghana - Latest Ghana News Headlines\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.ghanamma.com\/2011\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"BP in $7.2B partnership with Reliance - Ghanamma.com","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/","twitter_card":"summary_large_image","twitter_title":"BP in $7.2B partnership with Reliance - Ghanamma.com","twitter_description":"By Tom Burgis and James Fontanella-Khan , FT.com Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited, addresses a press conference with BP in central London on February 21.","twitter_creator":"@ghanamma","twitter_site":"@ghanamma","twitter_misc":{"Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/#article","isPartOf":{"@id":"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/"},"author":{"name":"","@id":""},"headline":"BP in $7.2B partnership with Reliance","datePublished":"2011-02-22T01:24:17+00:00","mainEntityOfPage":{"@id":"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/"},"wordCount":541,"commentCount":0,"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/","url":"https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/","name":"BP in $7.2B partnership with Reliance - Ghanamma.com","isPartOf":{"@id":"https:\/\/www.ghanamma.com\/2011\/#website"},"datePublished":"2011-02-22T01:24:17+00:00","author":{"@id":""},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.ghanamma.com\/2011\/02\/22\/bp-in-7-2b-partnership-with-reliance\/"]}]},{"@type":"WebSite","@id":"https:\/\/www.ghanamma.com\/2011\/#website","url":"https:\/\/www.ghanamma.com\/2011\/","name":"Ghanamma.com","description":"News In Ghana - Latest Ghana News Headlines","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.ghanamma.com\/2011\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"}]}},"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/posts\/277482","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/comments?post=277482"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/posts\/277482\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/media?parent=277482"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/categories?post=277482"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2011\/wp-json\/wp\/v2\/tags?post=277482"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}