India gives Reliance-BP deal nod

An enthusiast, with his face painted in the colors of the Indian flag, smiles during a rally celebrating the selection of Taj Mahal, on poster background, amongst the new Seven Wonders of the World, in Calcutta, India, Monday, July 9, 2007. The Great Wall of China, Rome's Colosseum, India's Taj Mahal and three architectural marvels from Latin America were among the new Seven Wonders of the World chosen in a global poll released on Saturday. (AP Photo/Bikas Das)

Approved: Reliance-BP deal

AP PHOTO/BIKAS DAS

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Aleya Begum

 22 July 2011 12:23 GMT

The Indian cabinet has approved Reliance Industries' plan to sell a stake in 21 of 23 planned oil and gas blocks to BP as part of a $7.2 billion deal, Indian Oil Minister S. Jaipal Reddy said today.



Reddy said the cabinet has not approved the remaining two blocks for "technical reasons".

He added that India "needs gas desperately" but declined to say if the deal would yield an increase in production, reported Reuters.



India's Oil Ministry had earlier recommended approval for the deal.

Reliance agreed in February to sell 30% stakes in 23 of its oil and gas blocks, including some in the KG basin.

For Reliance, it brings the benefits of BP’s expertise and deep-water experience, which could be used to accelerate developments on India’s east coast.

The…

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