BHP Billiton has decided to relinquish its interest in nine oil and gas exploration blocks in India. The withdrawal could be induced by significant delays in the clearance process, as the company was struggling to receive permits from India's defence ministry to conduct necessary exploration activities. The group had acquired interests in the blocks between 2008 and 2010; it will give up its 26% stakes in 6 blocks (74% owned by GVK) and its 100% stake in three others. It will keep a 50% stake in one block operated by BG Group.
This announcement is a serious blow to India's ambition to attract foreign investors to boost its domestic production. In 2010, Statoil and Petrobras decided against joining blocks operated by ONGC, due to approval delays. Over the last few years, Vedanta (UK) and BP were the only companies to carry out major investments in the sector (Vedanta acquired a controlling stake in Cairn India while BP took over a 30% stake in some Reliance-operated blocks).