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Saturday, July 23, 2011

FDI IN INDIA: Delhi gives nod for Reliance Industries-BP $7.2bn deal!


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Delhi gives nod for Reliance Industries-BP $7.2bn deal

The Indian government on Friday gave its go-ahead to global energy major BP buying 30 per cent stake in some of the oil and gas blocks held by Mukesh Ambani-led Reliance Industries. The deal is worth $7.2 billion and is one of the single largest foreign direct investments in the country.
"The CCEA has given approval for a stake in 21 of the 23 blocks. For technical reasons we did not approve two other blocks," Petroleum Minister Jaipal Reddy told reporters here after a meeting of the cabinet committee on economic affairs.
BP had announced in February that it would buy a 30 per cent stake in 23 of Reliance's oil and gas blocks, including India's largest gas field KG-D6, for $7.2 billion. It would also pay the Mukesh Ambani firm another $1.8 billion, based on successful exploration.
The deal size may increase to $20 billion, depending on future performance payments.
The remaining two blocks are not yet producing any oil or gas and once some issues are resolved, the government will take a call on these as well, Reddy added.


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