BG India to invest $ 1 bln in India

New Delhi, Mar 2 (UNI) BG India today said it will invest one billion dollars in the country to strenghten its upstream business over the next five years.

The investment will be made through BG Exploration and Production India Ltd (BGEPIL).

''Part of the investment will go on city gas distribution networks in India,'' BG India Managing Director William Adomson told reporters on the sidelines of a conference.

The company today signed a production sharing contract (PSC) with the government for Block KG-OSN-2004/1 which was awarded in the recent NELP-VI licensing round.

BGEPIL has a 45 per cent interest in the block along with partner ONGC, which holds a 55 per cent interest and operatorship.

''The award adds to our current portfolio of upstream assets and marks the beginning of BG India's diversification into a new and growing hydrocarbon region on the east coast. The KG basin is an important gas province and, along with ONGC, we look forward to participating in its development,'' Mr Adomson said.

BG India has already invested 900 million dollars in the Indian oil and gas sector.

The company has a 30 per cent interest in the joint venture that jointly operates the offshore Panna/Mukta and Tapti fields. It also has a 65.12 per cent controlling stake in Gujarat Gas Company Limited (GGCL), the country's largest private natural gas distribution and transmission company.

UNI