Reliance Industries Ltd.

RIL is likely to close its $7.2-billion deal to sell stake in 21 oil and gas blocks to the UK’s BP in the next 7-10 days. With the government formally communicating its approval for sale of a 30% stake in the 21 blocks, the closing documents are likely to be signed before month-end. BP, which had in the June quarter paid first installment of $2 billion, will make payments of the next tranche at the close of the deal. The complete $7.2 billion amount was originally envisaged to be paid in three installments.

25-30 experts from BP will arrive next month to begin jointly working with RIL on its assets, particularly the showpiece eastern offshore KG-D6 block, where production has fallen from 61 million standard cubic meters per day to about 46 mmscmd, instead of rising to the planned nearly 70 mmscmd. While RIL will continue its role as an operator of the blocks, BP will focus on enhancing sub-surface understanding. An overarching technical committee will be set up to ensure that blocks are explored in the right way and developed to the highest standards.crackcrack