Home > Crude Oil & Petroleum > RIL-BP Deal: A Mega Opportunity

RIL-BP Deal: A Mega Opportunity

The deal is expected to give Reliance Industries an access to world class deep water exploration and development capabilities. On the other hand, BP will gain from RIL’s strong project management skills and operations expertise, together with an access to the growing gas market in India. 

It is probably one of the few occasions when RIL has given such a high stake to another company. This reflects a change in RIL’s philosophy of acquiring assets abroad instead of giving stake. However, it is not certain whether it is the need for finances or only technology which lead to this change. 

It could have also been a strategic move to partner and have access to increased assets which will make them a stronger global contender.  

From India’s perspective, gas exploration by RIL will surpass domestic demand. And given BP’s strong B2B contacts, RIL will find it easier to sell abroad.

It must be noted that the deal is contingent of government approving the structure and one of the probable issues that can arise is on account of production sharing rights bestowed on legal ownership.

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Categories: Crude Oil & Petroleum
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