Reliance Industries Ltd.

Mukesh Ambani owned Reliance Industries and oil major BP plans to own a stake in Petronet LNG’s upcoming terminal in the Gangavaram port in Andhra Pradesh have been put on ice as Oil Ministry has developed cold feet towards the deal, as mentioned in a media report. Reliance and BP had been negotiating for a stake with Petronet for the upcoming LNG terminal over last three to four months.  However, the Ministry has taken a harsh approach towards Reliance after the sharp drop in natural gas output from the KG-D6 field.

The plans if materialized would have helped RIL's ambitious plans for India Gas Solutions, 50:50 venture between the company and BP for sourcing and marketing of natural gas in India. The joint venture is part of the agreement reached in February where BP picked up 30% stake in 23 oil and gas blocks of RIL, including the showpiece KG-D6 gas fields. Meanwhile, another key aspect of the partnership was Petronet LNG capitalizing on BP's ability to source LNG globally.

On the standalone basis, the company has posted a fall of 20.98% in its net profit at Rs 4473.0 crore for the quarter ended June 30, 2012 as compared to Rs 5661.0 crore for the same quarter in the previous year.  However, total income has increased by 14.23% at Rs 93779.0 crore for quarter under review as compared to Rs 82096.0 crore for the quarter ended June 30, 2011.