bp to continue energy, mobility ventures with Reliance: report

British energy firm bp plc has said that it would continue its oil and gas exploration and mobility ventures with Reliance Industries Ltd (RIL) though its exclusivity agreement with the conglomerate has come to an end.

The energy firm said will continue to pursue its ventures in India with the Mukesh Ambani firm owing to an unwritten strategic partnership, the Press Trust of India reported, citing bp’s outgoing India head, Sashi Mukundan.

The British oil and gas firm spent $7.2 billion in 2011 for 30% stake in 23 Reliance oil and gas blocks.

The KG-D6 block located in the Krishna Godavari Basin (KG Basin), off the eastern coast of India in the Bay of Bengal, was key to the deal, which also included a 10-year exclusivity period requiring BP to partner only with Reliance for energy projects or investments in India.

Mukundan spoke to news agency on the sidelines of the bp board members’ five-day India visit during which top officials of the firm met oil minister Hardeep Puri and other high ranking officials from its partner companies.

Citing that BP’s investment in India commenced after then BP CEO Lord John Browne’s visit to India in 2005, Mukundan told PTI that the partnership with Reliance is based on “trust and relationship” and is not contract based.

He added that BP’s India arm will invest a couple of billion dollars in the two blocks next to KG-D6 that produces a natural gas and oil.