NEW DELHI – Reliance Industries on Tuesday said it has received government approval for selling a 30 per cent stake in 21 out of a proposed 23 oil and gas blocks to UK’s BP Plc for $ 7.2 billion. The Cabinet Committee on Economic Affairs (CCEA) had on July 22 cleared the sale of stake by RIL to BP in 21 blocks, including the showpiece eastern offshore KG-D6 gas producing area and discovery area NEC-25.
However, it held back the same for two inconsequential blocks – one a deep sea area off the Orissa coast and the other an onland block in Assam – over technical issues.
“RIL has received the government of India’s approval for its transformational deal with BP,” the company said in a press statement. “RIL is grateful to the government of India for the approval, which will result in the largest foreign investment in the domestic hydrocarbon sector.”
RIL says this will result in the largest foreign investment in the domestic hydrocarbon sector. BP will have to furnish a bank guarantee and performance guarantee, as per the Production Sharing Contract.
