On Monday, February 21, 2011, British energy giant BP and Reliance Industries of India declared a huge investment contract, which has been valued at US $20 billion with subsequent investments in major oil and gas resources in India. British Petroleum stated it will make a payment of US $7.2 billion (€ 5.3 billion) to Mumbai-based RIL for a 30% stake in 23 oil and gas acreages in India, publicizing one more significant international project since it tries to put the 2010 oil spill tragedy in Gulf of Mexico at the back. In the beginning of this year, it joined hands with Rosneft of Russia in what can be interpreted as one more translating alliance to search for petroleum in the Artic zone.
These acreages already generate almost 33% of the overall gas usage in India.
This is the third biggest merger and acquisition contract in India. The deal, dependent on regulative go-aheads, contains RIL's famous D-6 gas field in the Krishna-Godavari watershed away from the shoreline of Andhra Pradesh. Reliance will keep on maintaining a bulk stake of 60-70% in these acreages.
Reliance Power Project Deal with BP: The Implications
BP is ready to turn into an important player in the petroleum and gas sector of India after finalizing a US $7.2 billion (€4.5 billion) contract with one of the largest corporations in India. The British oil behemoth will purchase a 30% stake in 23 oil and gas acreages run by Reliance Industries based in Mumbai. Currently, Mukesh Ambani is running the energy business of RIL and he is also the wealthiest man in Asia. In addition, the contract incorporates the creation of a fifty-fifty joint venture to provide, advertise, and sell natural gas, incorporating LNG, which can supply the energy to countless houses in India and lower the necessity of subsidized liquefied petroleum gas (LPG). Experts stated Reliance can get LNG from international plants of BP.
Reliance power project deal with BP has the strength to become the biggest individual foreign direct investment (FDI) in India.
About Reliance Power
It is a division of the Reliance Anil Dhirubhai Ambani Group (ADAG). It was set up to design, build, and run power projects in the international and domestic markets. The promoter of the company is Reliance Energy Limited, which is a private sector utility company based in India.
Accompanied by its subsidiaries, Reliance Power is currently setting up 13 medium and big-scale power projects with a collective planned installed capacity of 33,480 Megawatt.
About BP
BP or British Petroleum Plc is the second biggest publicly-traded oil company in the world. The company is vertically integrated and is involved in different types of business such as oil exploration and production, supply and marketing, refining, petrochemicals, and power generation and trading. The company is also engaged in renewable energy operations such as hydrogen, biofuels, wind and solar power. The company is an oil and gas supermajor and runs business in more than 80 countries of the world. It is headquartered in London, United Kingdom.
Last Updated on December 05, 2025
