"It is one thing to have the right resources below the ground, it is another to have the right conditions above the ground," Dudley said.
"Here in India, we have seen welcome moves for creating investment-friendly conditions enabling legislators to place regulations in the right place and we hope to see more vibrant domestic energy sector evolve. In particular, we hope to see continued progress toward a market-based price for natural gas which will help release domestic production, reduce imports and improve trade balance," Dudley said at the third convocation of Pandit Deendayal Petroleum University (PDPU).
The function saw Dudley, Reliance Industries Chairman Mukesh Ambani and Gujarat Chief Minister Narendra Modi sharing the dais.
Yesterday, Dudley and Ambani had separate meetings with Prime Minister Manmohan Singh, Finance Minister P Chidambaram and Oil Minister M Veerappa Moily in New Delhi. BP and its partner Reliance Industries promised to invest USD 8-10 billion in producing more gas.
"Yesterday we had a lot of meetings in Delhi. The minister (of petroleum) will talk about (gas prices); I am here to talk about Gujarat," Dudley told reporters here.
He reiterated that BP was hoping to set up one of the world's largest acetic acid plants here.
"BP was working with Indian Oil Corporation (IOC) for an acetic acid plant of a capacity of over million tonnes at an investment of over a billion dollars near IOC's Koyali refinery," he said. "We are also looking to setting up an LNG re-gasification plant here with Reliance in Gujarat."
The BP-Reliance joint venture has bid for GSPC's liquefied natural gas (LNG) terminal in Gujarat.
"There has been a bid process that GSPC has gone through and we are one of the three shortlisted players and right now we are going through some due diligence," said Sashi Mukundan, head of BP India.