Reliance, BP form JV for India natural gas business
By ERIC YEP
Reliance Industries and BP said Friday they've formed an equal joint venture, called India Gas Solutions, for sourcing and marketing natural gas in India.
"The joint venture company will also develop infrastructure to accelerate transportation and marketing of natural gas within the country," the companies said in a joint statement.
They added that Reliance and BP will provide equal amount of equity to fund the new company.
India Gas Solutions will have a six-member board, three each from Reliance and BP. BP's Kris Sliger will be the company's chairman and Reliance Industries's Bibhas Ganguly will be the vice chairman, the statement said.
Its chief executive officer will be Hiten Mehta and chief financial officer will be Suresh Manglani.
India Gas Solutions will initially have 30 employees and it will also "assume the administration of the existing gas contracts to KG-D6 customers," besides other opportunities, the companies said.
In August, Reliance Industries closed a $7.2 billion deal under which it sold a 30% stake in 21 exploration blocks in India to BP, including the gas-rich D6 block in the Krishna Godavari basin.
Dow Jones Newswires
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