BP-Reliance Indian natural gas JV unveiled

IRJ – November 18 – A new US$7.2 billion joint venture India Gas Solutions Pvt. Ltd, geared towards exploring and promoting natural gas play opportunities in India, was announced Friday by oil and gas giants BP PLC and Reliance Industries Ltd. (“RIL-BP”)

The 50:50 RIL-BP partnering will consist of 30 employees initially, run by six board members—three BP seats to three Reliance seats—and piloted by BP's Kris Sliger as company chair and Reliance’s Bibhas Ganguly as vice chair, the joint statement details. The position of chief executive is filled by Hiten Mehta—the brains behind BP’s Anchorage upstream gas project in Alaska—and Suresh Manglani, Vice President (Gas Business) and Petroleum (E&P) at Reliance, will assume the role of chief financial officer.

Both groups will stump up equal amounts of equity for the joint venture, and state that they will “also develop infrastructure to accelerate transportation and marketing of natural gas within the country.” The Friday announcement dates back to intentions expressed in February, when BP acquired a 30 per cent stake in 23 Reliance-held oil and gas blocks.

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