British oil major BP and Indian giant Reliance Industries (RIL) have entered into an oil and gas joint venture in which Reliance Industries will receive a whopping USD 7.2 billion from the BP.
As per the contract details and a statement given by Reliance Industries, BP will acquire a 30% stake in 23 oil and gas blocks including the KG-D6 fields in a bid to formulate the joint alliance of 50-50 between the two companies for sourcing and marketing the gas.
BP will make a payment of aggregate consideration of USD 7.2 billion with future performance payment up to $1.8 billion to Reliance Industries, according to Moneycontrol.com.
"Sentimental impact of the RIL-BP deal is what we saw in the spot rupee market today. That is usually the way it is since the actual inflows will come in only at a later date," said Utsav Kumar Das, dealer at state-run Allahabad Bank.
"If the entire $7.2 billion of this BP deal comes in, rupee can touch 43.50 levels. We expect the flows to come in in the next 7-10 days," said a dealer at a foreign bank, Sify reports.