Azernews.Az

LONDON – British energy giant BP said Monday that it will pay £4.44 billion ($7.2 billion) to Mumbai-based Reliance Industries for a 30-percent stake in 23 Indian oil and gas blocks.

"BP will pay Reliance Industries Limited an aggregate consideration of US$7.2 billion, and completion adjustments, for the interests to be acquired in the 23 production sharing contracts," the pair said in a joint statement.

"Future performance payments of up to $1.8 billion could be paid based on exploration success that results in development of commercial discoveries. These payments and combined investment could amount to US$20 billion."

Mukesh Ambani, chairman and managing director of Reliance Industries Limited, and Robert Dudley, BP chief executive, signed the deal on Monday.

"The partnership will combine BP`s world-class deepwater exploration and development capabilities with Reliance`s project management and operations expertise," the two groups added.

The Indian news marks BP`s latest attempt to move on following the devastating Gulf of Mexico oil spill disaster last year.

Crisis-hit BP reported its first annual loss in almost two decades earlier this month, as a result of the oil spill catastrophe, and outlined fresh plans to shift focus away from the United States.

BP suffered a loss of £3 billion ($4.9 billion) last year, the first shortfall since 1992 and compared with a massive profit of £8.60 billion ($13.96 billion) in 2009.

The group has also announced plans to halve its US refining business, less than one month after unveiling a transformational deal with Rosneft to explore the Russian Arctic region.