India’s Reliance Industries and BP have signed a major deal, wherein they will be jointly contributing Rs 40,000 crore ($6.2 billion) for the development of a gas block in the Krishna Godavari (KG) basin. It may be recalled that Reliance holds 60 percent in the gas block, whereas BP and Calgary-based Niko Resources Ltd hold 30 percent and 10 percent respectively. The announcement was made at a news event in Delhi, where Reliance Chairman Mukesh Ambani and BP Chief Executive Bob Dudley were present. The investment is expected to significantly boost gas production, as the gas field is expected to produce 30-35 million cubic meters of gas per day, spread across 2020 to 2022.
Speaking about the development, Dudley said, “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 in India, efficiently and economically.” The production from the gas field is in line with India’s commitment to transition from an oil-based economy to a gas-based economy. Reliance and BP also said that they will continue to explore business opportunities in areas such as developing “differentiated” fuels, trading carbon emissions and advanced low-carbon energies.