Reliance Industries announced that it entered into a partnership with British Petroleum (BP) where the UK based company will purchase a 30 percent stake in 23 oil and gas production-sharing contracts that Reliance operates in India. This includes producing KG D6 block and the formation of a 50:50 joint venture between the two companies for the sourcing and marketing of gas in India.

As guessed Reliance turned to AZB & Partners who advised them on Indian legal issues with a team led by Partner Shuva Mandal. Legal Week reported that Reliance was also advised by magic circle firm Allen & Overy with Energy Partners John Geraghty and Paul Griffin along with Texas energy firm Vinson & Elkins who acted as co-counsel. Vinson & Elkins had also advised Reliance on its previous two billion dollar deals including the purchase of strategic stake in Atlas Energy.

According to AZB release the total value of the transaction is pegged at approximately US$ 7.2 billion (Rs. 32,400 crore) with future performance payments of upto approximately US$ 1.8 billion (Rs. 8,100 crore).

In a press statement A & O Partner John Geraghty said, “This is a landmark transaction by any measure and strategically important for Reliance. We have a much valued relationship with Reliance and it is fantastic that we have been able to continue to develop that relationship by advising them in relation to this deal."

Talwar Thakore & Associates advised BP on the Indian leg of the transaction. BP was also advised by its best friend Linklaters, with India group head Sandeep Katwala and London-based Corporate Partner Stephen Griffin.

A press release by both Reliance and BP states that the JV will also endeavour to accelerate the creation of infrastructure for receiving, transporting and marketing of natural gas in India. The partnership will combine BP’s world-class deepwater exploration and development capabilities with Reliance’s project management and operations expertise.

According to the joint press release BP and RIL said, total investments could touch $20 billion (Rs. 90,000 crore) 

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