Mukesh Ambani’s RIL signs $20 billion deal with BP

February 21st, 2011 - 9:53 pm ICT by ANI  

Mumbai, Feb 21 (ANI): Mukesh Ambani’s Reliance Industries Limited (RIL) on Monday signed an agreement with oil major British Petroleum (BP) for 30 per cent stake in Reliance Industries’ 23 oil and gas blocks including the KG-D6 gas fields.

The deal, which is valued at 7.2 billion dollars, is one of the biggest foreign direct investments (FDI) in the country.

Besides the stake transfer, Reliance and BP will form a 50:50 joint venture for the sourcing and marketing of gas, the companies said in identical statements on Monday.

“BP will pay Reliance Industries Limited an aggregate consideration of US 7.2 billion dollars, and completion adjustments, for the interests to be acquired in the 23 production sharing contracts,” RIL said in a statement.

“Future performance payments of up to US$1.8 billion could be paid based on exploration success that results in development of commercial discoveries. These payments and combined investment could amount to US 20 billion dollars,” the statement issued by the RIL added. (ANI)

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