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RIL, BP join hands for mega Rs 40,000 crore oil and gas investment

Two of the largest private sector oil and gas investors, including UK-based giant BP and billionaire Mukesh Ambani-owned Reliance Industries (RIL),  announced on 15 June ‘17 their plans to jointly invest Rs 40,000 crore to develop three key acreages in the flagship KG D6 block off the Andhra Coast.

The strategic partnership will bring in additional 30-35 billion cubic meter (bcm) of natural gas, over the next three to five years and also look at jointly exploring fuel retailing business, BP CEO Bob Dudley and RIL chairman said in a joint press conference today.

“The partnership will realize PM Modi’s dream of shifting to a gas based economy and import substitution. The gas project will reduce India’s dependence on imports to around 10 percent of projected gas demand by 2022,” Dudley said. Both Dudley and Ambani where addressing the media after a 80 minutes meeting with Oil Minister Dharmendra Pradhan.

Ambani said the two companies will explore options to develop differentiated fuels, mobility and advanced low carbon energy business in India. With the idea of addressing electrification, digitization and disruptive mobility trends RIL already operates 1,400 pumps in India while BP has applied for a license.

“We will build new energy delivery systems in India first and evaluate opportunities in trading to optimize the value of existing products like oil, gas, aviation fuel, LNG, power and carbon,” Ambani said, adding that the two firms will make specific announcements on the execution of the strategy over the next year.

Responding to a query on the existing RIL-ONGC gas migration case Ambani said the company will follow legal process and hopes to bring the arbitration to end under the normal course of law.

“We have seen over the last two years a change in energy policy that has given us the confidence to work with RIL and bring significant investments. It is a commitment by BP and its board and is not be taken lightly, we had to re-prioritize our global investment to include these projects in our overall portfolio due to positive policy changes, ”

The three planned projects where fresh investments will flow include--- R-series, satellite and D55 fields in the KG D6 block. The projects will together add 3 trillion cubic meter of gas and the company’s plant to submit the development plant for satellite and D55 projects before the end of this year.


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