BP and Reliance Industries Limited (RIL) have formed a strategic partnership in India, which will operate across the gas value chain in India, from exploration and production to distribution and marketing. A 50-50 joint venture will be created for the sourcing and marketing of natural gas in India and BP will acquire a 30% stake in 21 oil and gas production sharing contracts (PSCs) operated by Reliance in India. These 21 gas and oil blocks include the KG D6 block that currently produces about 16.5 bcm/year, nearly 40% of India’s total gas production. RIL will remain operator of the PSCs and BP will bring its global deepwater, sub-surface and gas expertise to enhance exploration and development of the blocks. For BP, the $7.2bn investment is part of its global strategy to expand in growing markets with the help of local partners. The group could pay an additional $1.8bn based on exploration success.