BP and Reliance to invest $6 billion in Indian energy industry

BP and Reliance to invest $6 billion in Indian energy industry

BP (LSE:BP) has announced a partnership with Indian oil major Reliance Industries to invest $6 billion in India’s offshore energy industry.

The joint venture’s investment aims to boost India’s gas output from an East coast block and expand production to feed the nation’s rising fuel and energy demand.

The two firms, which jointly own the KG D6 gas block, said they plan to deepen and expand their partnership and will produce 30-35 million cubic metres of gas per day, phased over 2020-2022.

Speaking in New Delhi, BP CEO Bob Dudley, welcomed the investment: “This is an important step forward for BP in India. Working closely together, Reliance and BP are now able to develop these major deep water gas resources offshore India efficiently and economically. It is testament to our commitment to working in partnership with Reliance and with the Government to produce more energy in India, for India.”

Mukesh Ambani, Reliance chairman and managing director, said the announcement will provide India with much needed indigenous energy and supports the government’s development of a gas-based economy.

@RGNonline