BP finds $7bn for India purchase

21st Feb 2011 12:08

BP is paying $7.2bn (£4.4bn) for a 30% stake in 23 blocks in India owned by Reliance Industries.Future performance payments and investment could mean the UK oil giant ends up paying as much as $20bn for the assets, which include the producing KG D6 block.The pair will also set up a 50:50 joint venture to source and market gas in India."India is one of the fastest growing economies in the world," BP chief executive Bob Dudley said Monday. "By allying ourselves with Reliance, we will access the most prolific gas basin in India and secure a place in the fast growing Indian gas markets, creating a genuinely distinctive BP position."Reliance's blocks produce about 1.8 billion cubic feet of gas per day (bcf/d), more than 30% of India's total consumption, and over 40% of the country's total production.BP says energy consumption in India has grown by 190% over the past 20 years and will probably by over 4% per annum over the next 20 years - about 115% in total.