UK-based BP Plc has snapped up a 30 per cent stake in 23 oil and gas production contracts operated by Reliance Industries Ltd, or RIL, for Rs 32,389 crore ($7.2 billion). The acquisition, subject to regulatory approvals, also entitles RIL to receive future performance payments of up to Rs 8,097 crore ($1.8 billion), depending on the success of exploration activities.
The deal will give BP access to RIL's capabilities in upstream exploration and production. This is part of BP's game plan of securing significant presence in major hydrocarbon basins. RIL will gain access to BP's expertise in deepwater exploration and site development and will enable it to increase its natural gas production through a higher output rate.
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