BP and Reliance in £4.4bn partnership

City A.M. Reporter
BP has entered into a "transformational" oil and gas partnership with Reliance Industries, which involves the oil major paying $7.2bn (£4.4bn) to the Indian company.

Under the terms of the deal, BP will take a 30 per cent stake in 23 oil and gas blocks and form a 50:50 joint venture between the two companies for the sourcing and marketing of gas, the companies said in a statement.

BP will pay Reliance Industries an aggregate consideration of $7.2bn and future performance payments of up to $1.8BN could be paid.

The companies said these payments and the combined investment could amount to $20bn in total.