BP and Reliance in $7.2bn oil and gas alliance

BP has entered into a "transformational" oil and gas partnership with Reliance Industries, which involves the British oil major paying $7.2 billion to the Indian company.

Under the terms of the deal, BP will take a 30 percent stake in 23 oil and gas blocks and form a 50:50 joint venture between the two companies for the sourcing and marketing of gas, the companies said in a statement on Monday.

BP will pay Reliance Industries an aggregate consideration of $7.2 billion and future performance payments of up to $1.8 billion could be paid.

The companies said these payments and the combined investment could amount to $20 billion in total.

BP's shares were up 0.3 percent at 494.4 pence at 1108 GMT. Reliance Industries shares were up 2 percent.