New Delhi: Reliance Industries and UK's BP Plc on Friday announced incorporation of India Gas Solutions Pvt Ltd, a 50:50 joint venture company for sourcing and marketing of natural gas in India.
The joint venture is part of the agreement reached in February where BP picked up 30 per cent stake in 23 oil and gas blocks of Reliance Industries, including the showpiece KG-D6 gas fields.
"The joint venture company will also develop infrastructure to accelerate transportation and marketing of natural gas within the country," the two firms said in identical press statements.
India Gas Solutions will be funded with equal equity from BP and RIL. The company's Board comprises six members with equal representation from BP and RIL.
"This joint venture will assume the administration of the existing gas contracts to KGD6 customers, and will also pursue other opportunities, including LNG import," the statements said.
BP India CFO Kris Sliger will be the Chairman of the joint venture while RIL's Vice President for Gas, Bibhas Ganguly will be the Vice-Chairman.
BP's Hiten Mehta would be the Chief Executive Officer while RIL's Suresh Manglani its Chief Financial Officer. RIL's Amit Mehta would be Chief Operating Officer and Brian Dodson of BP its Chief Commercial Officer.
Speaking on the occasion, BP India head Sashi Mukundan said, "Our vision is to see the RIL-BP joint venture company emerge as a major participant in meeting India's growing gas demand. The need for assured gas supplies to fuel this growth is crucial and the RIL-BP partnership is in a unique position to contribute significantly in this respect."
"The incorporation of the joint venture company is a significant step in the relationship of RIL and BP and further establishes the commitment of both the parties to the Indian market," said PMS Prasad, Executive Director, RIL.
"Demand for gas has been growing at an exponential rate and we anticipate natural gas to emerge as the preferred choice of fuel given its properties as a cleaner and sustainable fuel source," he said.
India Gas Solutions will commence operations with 30 employees seconded from BP and RIL, with deep experience in the gas business, both in India and internationally.