RIL, BP To Invest Rs.40,000 Crore In Energy Projects In India

NEW DELHI: Reliance Industries (RIL) and British energy major BP on Thursday annnouced the creation of a joint venture energy vertical to work across the entire value chain, involving investment of $6 billion, or Rs.40,000 crore.

This would also develop their existing deep water gas fields in India's eastern offshore to bring to fresh production 1 billion cubic feet per day of natural gas by 2022.

"We will invest Rs.40,000 crore over many years as new investment to bring in 30-35 million cubic metres of gas in next three-to-five years and sustain it over seven-to-eight years," Reliance Industries Chairman Mukesh Ambani said at a press briefing here.

The "solid relationship between our two companies is a great example of what can be achieved while working together at scale", he added.

Ambani said RIL was investing together with its eastern offshore KG basin gas fields' consortium partner BP after a gap of 6 years.

The first project of the tie-up is to develop already discovered R-series gas fields in Block KGD6, approximately 70 km off India's east coast. A dry gas development project in water-depths of more than 2,000 metres, the project is expected to produce up to 12 million cubic metres of gas a day after going on-stream in 2020.

"India holds great promise for future," BP CEO Bob Dudley said, adding that tie-up was an important step for BP in India.

"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," he said.

BP plans to submit development plans for the next two projects for government approval before the end of 2017. Development of the three projects is expected to bring a total 30-35 million cubic metres of gas a day onstream, phased over 2020-2022.

India consumes over 5 billion cubic feet (141.5 million cubic metres) a day of natural gas.

Earlier, Dudley met Prime Minister Narendra Modi.

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