Mumbai: Indian energy major Reliance Industries on Tuesday said it had completed the deal with British Petroleum PLC to sell a 30 percent stake in 21 oil and gas production sharing contracts for $7.2 billion.
The two companies are set to form a 50-50 joint venture to build infrastructure and market gas produced from the leases, and BP could pay Reliance a further $1.8 billion, subject to future exploration success.
"This significant step will commence the planned alliance which will operate across the gas value chain in India, from exploration and production to distribution and marketing," the two firms said in separate statements.
The company on Aug 9 had announced that it had received the Indian government's formal approval for the deal, which RIL chief Mukesh Ambani said would help India to unlock the full potential of its gas reserves.
Even though the transaction had received a nod from the government on July 22, the companies were waiting to for the approval in writing to complete the deal.
The government, however, has not cleared the deal on two blocks of the Reliance’s original proposal of sell the stake in 23 blocks for $7.2 billion and another $1.8 billion depending on linked to exploration success.
The Indian business tycoon Mukesh Ambani-led company had said it would continue trying to seek approval for the remaining two blocks.