BP To Acquire 30% Stake In 23 Oil And Gas Blocks From Reliance Industries: BP’s Move To Expand Its Presence In Emerging Market - Deal Analysis From GlobalData
Summary
BP p.l.c. (BP) signed the relationship framework and transactional agreements to acquire 30% stake in 23 oil and gas production sharing contracts, including the producing KG D6 block from Reliance Industries Limited (Reliance Industries) for an aggregate purchase consideration of $7.2 billion, plus completion adjustments. Apart from the consideration, BP will also pay future performance payments of up to $1.8 billion based on exploration success that results in the development of commercial discoveries. Future performance payments and combined investment could amount to $20 billion. In addition, the agreement also includes the formation of a 50:50 joint venture by both the companies for the sourcing and marketing of gas in India. The joint venture will endeavour to accelerate the creation of infrastructure for receiving, transporting and marketing of natural gas in India. The joint venture will capitalize on Reliance’s outstanding project management track record and operations expertise and Reliance will continue to be the operator under the production sharing contracts, whose blocks lie in water depths ranging from 400 to over 3,000m. The partnership will combine BP’s deepwater exploration and development capabilities with Reliance’s project management and operations expertise. The assets include 23 oil and gas production sharing contracts, including the producing KG D6 block, which are located in the Krishna-Godavari (KG) basin, India. The transaction implies deal values of $80,000 per boe of daily production, and $359.72 per acre of land.
Scope
Summary
BP p.l.c. (BP) signed the relationship framework and transactional agreements to acquire 30% stake in 23 oil and gas production sharing contracts, including the producing KG D6 block from Reliance Industries Limited (Reliance Industries) for an aggregate purchase consideration of $7.2 billion, plus completion adjustments. Apart from the consideration, BP will also pay future performance payments of up to $1.8 billion based on exploration success that results in the development of commercial discoveries. Future performance payments and combined investment could amount to $20 billion. In addition, the agreement also includes the formation of a 50:50 joint venture by both the companies for the sourcing and marketing of gas in India. The joint venture will endeavour to accelerate the creation of infrastructure for receiving, transporting and marketing of natural gas in India. The joint venture will capitalize on Reliance’s outstanding project management track record and operations expertise and Reliance will continue to be the operator under the production sharing contracts, whose blocks lie in water depths ranging from 400 to over 3,000m. The partnership will combine BP’s deepwater exploration and development capabilities with Reliance’s project management and operations expertise. The assets include 23 oil and gas production sharing contracts, including the producing KG D6 block, which are located in the Krishna-Godavari (KG) basin, India. The transaction implies deal values of $80,000 per boe of daily production, and $359.72 per acre of land.
Scope
- Rationale behind BP acquiring stake in Reliance Industries' assets in India, Krishna-Godavari basin,
- Strategic Benefits for the companies involved,
- Geography covered -India
- Develop a sound understanding of the major M&A's, Partnerships, And Joint Ventures taking place in Asian Oil & Gas industry
- Identify the most lucrative segments to leverage on the growth oppurtunities available in the India's oil & gas market
- Get a detailed analysis of a deal to enable you to take better decisions
1 TABLE OF CONTENTS
1.1 List of Tables
1.2 List of Figures
2 BP TO ACQUIRE 30% STAKE IN 23 OIL AND GAS BLOCKS FROM RELIANCE INDUSTRIES
2.1 Deal Overview
2.2 Deal in Brief
2.3 BP Will Gain Access to Prospective Oil & Gas Assets in India
2.4 Gas Marketing Venture
2.5 Reliance Will Gain Technological Expertise from BP
2.6 BP is Increasing Its Exposure to Growing Energy Markets and Will Capitalize on RIL’s Operational Expertise
2.7 Deal Financials and Valuations
3 APPENDIX
3.1 Methodology
3.2 Contact Us
3.3 Disclaimer
LIST OF TABLES
Table 1: KG Basin Blocks Acquired by BP, February 2011
Table 2: Details of KG-D6, February 2011
Table 3: Well Details of KG-D6, February 2011
Table 4: Area Details of KG-D6 Producing Fields, February 2011
Table 5: KG-D6 Production Details, September 2008 –December 2010
Table 6: BP’s Recent Financial Deals Summary, February 2011
Table 7: Companies Involved
Table 8: Financials of the Deal
Table 9: Target Information
Table 10: Target’s Production and Reserves Information
Table 11: Company Valuation Multiples
Table 12: Commodity Prices in $, Last Close
Table 13: Acquirer Information
Table 14: vendor Information
LIST OF FIGURES
Figure 1: Map of Acquired Blocks, February 2011
1.1 List of Tables
1.2 List of Figures
2 BP TO ACQUIRE 30% STAKE IN 23 OIL AND GAS BLOCKS FROM RELIANCE INDUSTRIES
2.1 Deal Overview
2.2 Deal in Brief
2.3 BP Will Gain Access to Prospective Oil & Gas Assets in India
2.4 Gas Marketing Venture
2.5 Reliance Will Gain Technological Expertise from BP
2.6 BP is Increasing Its Exposure to Growing Energy Markets and Will Capitalize on RIL’s Operational Expertise
2.7 Deal Financials and Valuations
3 APPENDIX
3.1 Methodology
3.2 Contact Us
3.3 Disclaimer
LIST OF TABLES
Table 1: KG Basin Blocks Acquired by BP, February 2011
Table 2: Details of KG-D6, February 2011
Table 3: Well Details of KG-D6, February 2011
Table 4: Area Details of KG-D6 Producing Fields, February 2011
Table 5: KG-D6 Production Details, September 2008 –December 2010
Table 6: BP’s Recent Financial Deals Summary, February 2011
Table 7: Companies Involved
Table 8: Financials of the Deal
Table 9: Target Information
Table 10: Target’s Production and Reserves Information
Table 11: Company Valuation Multiples
Table 12: Commodity Prices in $, Last Close
Table 13: Acquirer Information
Table 14: vendor Information
LIST OF FIGURES
Figure 1: Map of Acquired Blocks, February 2011
