Stage set for nod to Reliance-BP deal
Stage set for nod to Reliance-BP deal
New Delhi: The decks have been cleared for formalizing one of India’s biggest foreign direct investment (FDI) deals after the petroleum ministry unconditionally approved the proposal allowing Mukesh Ambani-owned Reliance Industries Ltd (RIL) to offload a 30% stake in its hydrocarbon blocks to London-based BP Plc.
“Our ministry has recommended the deal to the CCEA. It will be coming up for CCEA’s approval next Thursday. It will be the single largest FDI," said a top oil ministry functionary, who did not want to be named.
While the deal will help BP expand its global footprint, it will give RIL access to better technology and that will help it realize better value from its hydrocarbon assets. The deal values RIL’s 23 oil and gas blocks at $24 billion. As part of the deal, which has been in the making for the last five years, RIL and BP will also form an equal joint venture for “sourcing and marketing gas in India", which will also have the necessary infrastructure. Mint had reported on 7 February that BP was in talks with RIL to buy 30-45% in D6.
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