BP Included as Partner in KG-D6

The government has amended the KG-D6 contract to formally induct British energy giant BP as 30% partner in India's biggest gas field operated by Reliance Industries.

According to a report in Economic Times, the move will give BP a legal role in the management of the gas block.

BP’s entry is for D6 block only and the government is processing amendments in other 20 PSCs.

The British energy giant has been waiting for formal signing of contracts since August 2011 when the government approved its $7.2-billion deal to acquire 30% stake in 21 blocks held by RIL.

Reliance and BP had announced the deal in February last year for 23 blocks but the government did not approve their partnership in two blocks due to technical reasons. 

Earlier, Indian authorities had blocked formal inclusion of BP as 30% partner of RIL in the D6 block saying that the company had not furnished a bank guarantee. BP had, however, contested this saying guarantees were needed for exploration blocks and the D6 block was past the exploration phase.