OREANDA-NEWS. July 6, 2011. The USD 7.2 billion RIL-BP deal is likely to get delayed because the Directorate General of Hydrocarbons (DGH) is studying all the production sharing contracts (PSC) involving 23 oil and gas blocks that need to be modified to include RIL’s new partner BP.

The DGH is the technical arm of the Petroleum Ministry. The process of modification of PSCs is complex and time consuming, sources said. Also read (BP to aid Reliance in oil and gas hunt at KG-D6 fields)

The deal was signed in February 2011. RIL stocks ended over 2.5 per cent lower on Tuesday. In June, the Home Ministry had given unconditional approval to Reliance Industries for the sale of a 30 per cent stake in 23 oil and gas properties, including the firm's showpiece KG-D6 block, to UK's BP Plc for USD 7.2 billion.

The Home ministry, which was asked by the Petroleum Ministry to give security clearance to India's biggest foreign direct investment, gave its no-objection certificate (NOC) on June 1. Once the DGH has reviewed all the PSC, the deal will go back to the Petroleum Ministry. Sources said the Petroleum Ministry is likely to put up the deal before the cabinet for a final approval.