Robert Dudley, BP’s Group Chief Executive is on his 2nd visit to India, to meet Government Ministers and RIL Executives. He marked his first visit for BP’s historic partnership with Reliance Industries Ltd. and his 2nd visit will certainly be for a more significant reason.
BP is into finding, extracting and moving oil and gas, operating across 6 continents and over 100 countries. RIL-BP partnership includes BP taking 30% stake in 23 oil and gas production sharing contracts that Reliance operates in India, which also includes the producing KG-D6 gas block. The British Oil Major has invested $7.2 billion, which is the largest foreign direct investment in the oil and gas sector.
The Petroleum Ministry was unable to seek investors in India’s Hydrocarbon basins, but BP’s venture into the field certainly symbolizes its faith in the Indian Market. Reliance Industries is facing challenges with its Krishna Godavari basin due to falling gas output, and Robert Dudley, who considers it as the ‘Golden Block’ has chosen this time to visit again.
“D6 is a world class resource, but also a complex reservoir that needs high technology and risk taking”, said Robert Dudley in his interview. BP is known to take risks, as it signed its deal with Reliance after the Gulf of Mexico Spill. Robert Dudley’s statement “BP’s great sub-surface exploration can help Reliance get back the sagging output” has certainly restored the faith of many towards RIL.
RIL and BP are jointly working towards restoring the production from the reservoir to its earlier levels. They are studying the field further and simultaneously RIL has submitted a plan for government approval, for the development of four satellite fields, which will help increasing the production from D1 and D3.
Robert Dudley’s first sojourn to the country marked BP’s exploration of India’s Oil Sectors and was a symbol of his faith and confidence in the Indian Market. His 2nd visit is certainly a relief to many investors, as he helps retaining and restoring this faith.