The petroleum ministry has sought security clearance from the home ministry for allowing UK’s BP Plc to buy 30 per cent stake in most of Reliance Industries’ oil and gas blocks, including the giant KG-D6 off east coast.
Upstream regulator Directorate General of Hydrocarbons has processed an application made by Reliance for transfer of its 30 per cent interest in 23 oil and gas blocks and sent its recommendation to the oil ministry, an official said. “DGH had sought some clarifications on the $7.2-billion deal which Reliance has already provided. Now, the petroleum ministry has approached the home ministry for a no-objection,” he said.
The Europe’s second biggest oil company will pay $7.2 billion for 30 per cent stake in 23 of 26 exploration blocks held by Reliance besides a performance payment of up to $1.8 billion if the tie-up leads to the development of commercial discoveries.