After receiving an official go ahead from the Indian government, RIL-BP deal is all set to roll out its big plans soon. For starters, the London based energy major BP Plc is keen on establishing a new gas marketing joint venture with Reliance Industries Limited (RIL) in an effort to kick start the RIL-BP venture. The new JV company will most likely be registered within the next two months, and the management team responsible for driving this company is currently in the process of finalization.
To encourage private sector investment in gas infrastructure, BP wants gas prices to be largely market driven, especially ‘in light of significant untapped potential of natural gas in the country’, as stated by Steve Westwall, member of BP's executive management team, at the recent energy conference in New Delhi.
Head of BP's Indian operation, Sashi Mukundan, said that the new joint-venture company will most likely import liquefied natural gas (LNG) via a possible LNG import terminal, established specifically for this account. It will also look to utilize the capacity at existing LNG terminals of Mukesh Ambani-owned pipeline company Reliance Gas Transportation Infrastructure across the country. As LNG import and usage sees an escalating climb, RIL and BP are both optimistic in charting the opportunity to its full potential.
As far as KG-D6 gas field is concerned, BP will be rendering its full support to RIL in increasing the production level at the block within a period of two years. As a part of the RIL-BP venture, the companies plan to engage in extensive discussions with the government to streamline their plans to increase production at KG- D6. They may also present new field development plans for various blocks and appraise other discoveries simultaneously. For now, teams from both RIL and BP will take part in extensive research of gas and oil acreage to determine the future stages of development of KG D6 fields.