After many buyouts,Reliance Industries drives a sale

Reliance Industries,which went on a buying spree in 2010,today announced its first major deal for sale of stake in its lucrative oil and gas fields to British major BP Plc.

The Mukesh Ambani-led conglomerate had embarked on various acquisitions,especially those related to shale gas assets in 2010,as also interests in telecom and hospitality space during the same year.

As per the deal announced today,RIL would sell 30 per cent stake in its 23 oil and gas blocks,including the giant KG-D6 gas fields off the east coast,to BP for USD 7.2 billion.

Story continues below this ad

RIL said the partnership will combine BP’s world class deepwater exploration and development capabilities with its own project management and operations expertise.

The country’s most-valued firm,which operates the world’s largest refinery complex,had shelled out about USD 3.4 billion on three US shale gas joint ventures last year.

In August 2010,the Indian firm had invested USD 392 million for 60 per cent interest in a shale gas joint venture with US-based Carrizo Oil & Gas. Since April 2010,RIL had entered into deals worth USD 3 billion for snapping up stakes in Atlas Energy and Pioneer Natural Resources,two other American entities that has substantial shale gas assets.

Besides,the corporate behemoth forayed into new areas after smoking the peace pipe with younger sibling Anil Ambani,that also saw both brothers scrapping their non-compete agreement in business.

Story continues below this ad

Last year also saw the corporate behemoth entering telecom and hospitality sectors,among others.

In June,RIL had snapped up 95 per cent stake in Infotel,which was the sole winner of pan-India broadband spectrum,for Rs 4,800 crore (over USD 1 billion).

Few months later,RIL acquired 14.12 per cent stake in Oberoi Group’s EIH for Rs 1,021 crore.

RIL had also picked up a strategic stake between 26-49.9 per cent — for an undisclosed sum in captain Gopinath-founded logistics company Deccan 360.