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OIL & GAS
 
Vol. IX Issue. 8
RIL-BP plan to buy stake in Petronet LNG terminal shelved

07 August 2012

August 3, 2012. Reliance Industries and oil major BP's plan to take a stake in a new gas import terminal of Petronet LNG have been grounded under pressure from the oil ministry, which has had a strained relationship with RIL. Reliance and BP, which are partners in oil and gas blocks in India and have set up a joint venture for gas marketing and infrastructure, had been negotiating with Petronet for a stake in the upcoming LNG terminal in the Gangavaram port in Andhra Pradesh, and would have used BP's international presence. The oil ministry has taken a stern approach towards Reliance after the sharp fall in natural gas output from the KG-D6 field, which was once feted as the game-changing discovery that would double India's gas production. The oil ministry says output fell because the company did not drill enough wells while Reliance blames geological uncertainty and says that drilling additional wells is akin to inserting more straws to the same can of coke. Partnership with Petronet would have helped RIL's ambitious plans for India Gas Solutions, the venture RIL and BP set up after the British firm bought stakes in RIL oil and gas blocks including KG-D6 for $7.2 billion.

      
 
 
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