BP and the Indian RIL signs cooperation agreement

British oil major BP and Indian giant Reliance Industries (RIL) have entered into an oil and gas joint venture in which Reliance Industries will receive a whopping USD 7.2 billion from the BP.

As per the contract details and a statement given by Reliance Industries, BP will acquire a 30% stake in 23 oil and gas blocks including the KG-D6 fields in a bid to formulate the joint alliance of 50-50 between the two companies for sourcing and marketing the gas.

BP will make a payment of aggregate consideration of USD 7.2 billion with future performance payment up to $1.8 billion to Reliance Industries, according to Moneycontrol.com.

"Sentimental impact of the RIL-BP deal is what we saw in the spot rupee market today. That is usually the way it is since the actual inflows will come in only at a later date," said Utsav Kumar Das, dealer at state-run Allahabad Bank.

"If the entire $7.2 billion of this BP deal comes in, rupee can touch 43.50 levels. We expect the flows to come in in the next 7-10 days," said a dealer at a foreign bank, Sify reports.