The Indian government has not approved the much awaited partnership of India’s Reliance Industries and British Petroleum as of yet. BP has already invested USD 7.2 billions in India’s private company Reliance Industries and is now waiting for the government’s nod to start sharing data on KG D6 block – signing PSC by BP is taking time even though CCEA has been approved on July 7.
Government of India sent out the letter of approval to BP which they received on August 8; the same date is the effective date of transfer. The amendments of PSC have been signed and submitted by the partners with all the documents that are required. BP has called the PSC amendment signing a mere formality and all the teams in the joint venture have already begun working – they are looking for ways to increase the production KG D6 blocks and other projects.
Reliance recognized the fall in water ingress and reservoir pressure in the output but DGH, the upstream oil regulator, has claimed that Reliance has yet not drilled enough wells. It is believed that RIL needs BP as soon as possible to help them increase the D6 production.
Still, the decline in gas output will not affect RIL’s rating, rating agency said. Chief Executive of second biggest oil company in Europe is visiting India to meet the hotshots Prime Minister Manmohan Singh, Finance Minister Pranab Mukherjee and the oil minister Jaipal Reddy. He is expecting the gas output to increase in 2014 with development of infrastructures.
Belll The Bull says the news is not good for the marketsGoogle+