On Friday, ET Now has reported that the cabinet has approved that UK’s BP will purchase 30 percent shares of Reliance Industries' 23 oil and gas blocks including the showpiece KG-D6 gas fields, for $7.2 billion. UK’s BP has to prepare a bank guarantee and performance guarantee as required under the production-sharing contract.

This deal may cross $20 billion (USD) with the future performance payments and the investments. This will give Reliance to access BP's expertise in deep-water drilling and accelerate development and production at its fields particularly the under-performing eastern offshore KG-D6 whereas BP which has suffered heavily in the Gulf of Mexico oil-spill disaster. With the help of this transaction, BP can enter a market with a 5-8 percent growth.

Shares of Reliance Industries have increased by 2% on the bourses and have added the company with Rs 4,200 crore to its market valuation.

At the end of the trading session, the stock was settled at Rs 873.60, up by 1.49% from last close. The market valuations of the company has increased to Rs 2,85,985 crore from Rs 2,81,794 crore. The country's most valued company and the biggest private sector entity is scheduled to announce the financial results of the Company for the quarter ended June 30, 2011 on July 25.