BP Plc, Europe's second biggest oil company, and Reliance Industries will invest $5 billion in developing untapped gas reserves in the KG-D6 block, aimed at reversing the fall in gas production, RIL statement had said yesterday.
Reacting to the development, shares of the company opened on a bullish note and then touched an intra-day high of Rs 878.50, up 3.49% from their previous close.
The stock closed at Rs 877.15, up 3.34%.
Accordingly, the market capitalisation of the company swelled by Rs 9,187 crore to reach Rs 2,83,222 crore, from Rs 2,74,035 crore yesterday.
Marketmen said the surge was largely on account of the proposed investment that will help develop untapped gas reserves in the KG-D6 block.
The BP-RIL investment will be spread over next 3-5 years and boost gas output from the KG D6 block in the Krishna- Godavari basin.