UKs BP plc has surrendered 9 out of the 21 oil and gas blocks where it had bought 30 per cent

stake from Reliance Industries for $7.2 billion, due to poor hydrocarbon prospects. BP had last year bought 30 per cent stake in a total of 23 oil and gas blocks of RIL including the gas discovery areas of KG-D6 and NEC-25. The Cabinet had however approved of BP taking stake in 21. Sources said that after initial assessment, RIL-BP have given up 9 out of the 21 blocks their joint venture had.

 The joint venture is currently focused on reviving the flagging eastern offshore KG-D6 fields and bringing the Mahanadi basin NEC-25 discoveries to production. Declining to comment on the relinquishment, BP India head Sashi Mukundan said, "We want to focus on quickly increasing production and finding more oil and gas". He said output from the main Dhirubhai-1 and 3 (D1&D3) gas fields in KG-D6 block would increase in 2015 after the joint venture puts up additional gas compression facilities and revives some of the six closed wells.

Conclusion
As on 2010: Times of India: RIL should bid to take over BP The share price of British Petroleum, the fourth largest company in the world, has halved after causing the greatest environmental disaster in history. Its out-of-control Macondo well is spewing thousands of barrels of oil daily into the Gulf of Mexico, killing birds and sea life and ruining tourist beaches and the livelihoods of fishermen. It has been obliged to suspend dividends and put $20 billion into an escrow account from which damages will be paid. But disaster for some means opportunity for others. Mukesh Ambani suddenly has an opportunity to take over the fourth largest company in the world. Mukesh could offer a merger in which two Reliance shares would be exchanged for every BP share, giving BP shareholders a substantial premium over their current market value. This would, however, carry the risk of sinking Reliance if BP itself is driven into bankruptcy by a failure to plug the Macondo well.

 The settlement for the deal is to happen in 2012. The question is, can BP pay for the 30% stake with the major Macondo diseaster. This merger is aimed at increasing the production capabilities.