Reliance Industries Ltd has received $2 billion from BP as part of $7.2 billion for acquiring participating interest in the Indian company's 23 oil and gas blocks in the country.

Sources told Business Line that the remaining amount is expected during the current quarter once the deal gets mandatory approvals.

The Cabinet Committee on Economic Affairs (CCEA) is likely to consider the Petroleum Ministry's recommendation of granting approval to the deal shortly.

Conditional Approval

Twenty-one blocks may get unconditional approval. But for two blocks — in Assam (on-land block AS-ONN-2000/1) and in North East Basin (NEC-DWN-2002/1) — the approval could be conditional.

According to sources, this is because the exploration phase status of 21 blocks was clear.

But for the remaining two blocks the Directorate General of Hydrocarbons and the contractor, Reliance Industries, hold divergent views on the exploration phase.

However, this conditional approval will not be a hindrance to the deal getting the nod, as they are more technical in nature, sources added.

The Petroleum Ministry has proposed that conditional approval for these two blocks could be given pending resolution of the issue.

In February this year, BP had agreed to take 30 per cent stake in Reliance Industries' 23 oil and gas blocks.

According to the announcement, BP will pay Reliance Industries an aggregate $7.2 billion. Future performance payments of up to $1.8 billion could be paid on exploration success that results in development of commercial discoveries.

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