Reliance Industries (RIL) Chairman and MD Mukesh Ambani, in an address to RIL’s shareholders, said RIL would continue to follow its successful strategy and focus on improving its portfolio, increasing efficiency, product innovation and expanding its businesses in order to get closer to key markets.

Ambani said within a year of start of gas supply from KG D6, the supply has been ramped up to over 60 million standard cubic metres per day (mscmd) of natural gas and 35,000 barrels of crude oil per day.

“Increased availability of natural gas has resulted in higher volume and cheaper cost of indigenously produced fertilisers, thereby saving the country Rs 4,000 crore per annum in subsidies. It has also resulted in a significant improvement of 30 per cent in gas-based power generation in the country and the replacement of more expensive liquid fuel for refining, steel and petrochemical industries,” Ambani said in a statement in the annual report.

Mukesh AmbaniDuring the year, RIL achieved a turnover over Rs 2,00,000 crore or $44.6 billion and its net profit increased to Rs 16,236 crore ($3.6 billion).

The company announced a dividend of 70 per cent amounting to Rs 2,430 crore ($541 million), including dividend distribution tax.

RIL’s exported products were worth Rs 1,10,176 crore ($24.5 billion) against Rs 89,199 crore in the previous year. Its exports, which represent 55 per cent of RIL’s turnover, were to 123 countries.

Petroleum products constitute 85 per cent and petrochemicals account for 15 per cent of the exports.

During the year, the Petroleum Trust sold 88.8 million equity shares (adjusted for bonus issue) of the company and realised Rs 9,334 crore. As on March 31, RIL’s debt was at Rs 62,495 crore ($13.9 billion).

The company’s cash and cash equivalents as on March 31 amounted to Rs 21,874 crore ($4.9 billion). These are placed in bank fixed deposits, certificates of deposits, government securities and bonds, it said its annual report.

Source:http://news-views.in/ril-to-expand-business-in-key-markets-mukesh/

Russia’s leading petrochemicals group Sibur Holding is planning to join forces with Reliance Industries (RIL), India’s top private sector company, to produce synthetic rubber in India.

Moscow-based Sibur and Reliance Industries (RIL) of Mumbai, India have signed a preliminary agreement to form a joint venture butyl rubber plant at Reliance’s integrated petrochemicals complex in Jamnagar. The partners aim to feed Asia’s rapidly growing rubber consumption, led mainly by the expansion of automotive tyre manufacturing.

Under the terms of a memorandum of understanding the firms signed, Sibur will provide proprietary technology for butyl rubber polymerization and its finishing. Reliance is to contribute a new raw materials unit and the necessary infrastructure, the partners said in a joint statement.

“The creation of new capacity in close proximity to the Asian markets provides both Sibur and Reliance with exciting opportunities. Rubber consumption in Asia has shown strong growth in recent years,” commented Sibur’s president Dmitry Konov.

A Reliance spokesman said the move was “the right step towards strengthening the company’s position in the Indian market of synthetic rubber” as well as “an important step” in implementing the elastomers strategy formulated by its chairman Mukesh Ambani.

The Indian group has recorded an annual profit equal to $6.2bn on sales equivalent to more than $44bn as of March 2010.

Sibur manufactures 23% of all propylene and polypropylene, 17% of all polyethylene, 30% – 49% of different synthetic rubbers and 34% of all tyres in Russia.

Source:http://news-views.in/sibur-joins-forces-with-ril-in-indian-rubber-deal/

Four years ago, the Ambani brothers parted ways dividing the Reliance Group into two with a promise they won’t compete against each other. In that partition, Anil Ambani walked away with Reliance Communications (RCOM), today the second-largest telecom company in India, which was incubated by elder brother Mukesh Ambani. Amid speculation that Mukesh may now want to re-enter the business, analysts said Idea may be ideal. As the Idea commercial says, ‘What an Idea, Sirji’.

Last week, the brothers annulled their no-compete agreement for all businesses, excluding gas-based power generation. The move opens oil exploration and refining to Anil, while power, financial services and telecommunications become available for the elder Ambani.

It is not clear whether Mukesh will enter the telecom business, or how. There is no publicly available information that any deal is in the works. ET spoke to a number of analysts to figure out the possible options before him.

“If Idea is available, RIL could get interested in re-entering the business,” said Gaurav Dua, head research, Sharekhan. “I have my doubts that RIL may enter the business to build it from scratch.”

Aditya Birla Group-owned Idea Cellular is the third-largest GSM service operator with 15%, or 65.3-million subscribers, as of April-end. It recently won third-generation, or 3G, bandwidth in 11 service areas, for a sum of Rs 5,769 crore.

The company also has an identity that is independent of the Reliance brand, which is currently associated with RCOM, the flagship company of Anil Dhirubhai Ambani Group (ADAG). It has often been said that Idea may be sold, given the right price, but what that is, only a few hazard a guess. Idea sold a stake to Axiata, formerly Telekom Malaysia, at around Rs 157 a share in June 2008. The stock is currently trading at Rs 50.

Axiata currently holds around 23% in Idea, 47% is held by promoters, while the rest is with institutional and retail investors.

Source:http://news-views.in/mukesh-ambani-may-enter-telecom-business-with-idea-videocon/

Reliance Industries Limited (RIL) announced its fifth oil discovery in exploration block CB-ONN-2003/1 (CB 10 A&B), awarded under the NELP-Vround of bidding. The block CB-ONN-2003/1 is located at a distance of about 130 kms from Ahmedabad, Gujarat, in the Cambay basin. The block, in which Reliance holds 100% participating interest, covers an area of 635 square kilometres, the company said. The discovery is significant as this play fairway is expected to open more oil pool areas, leading to better hydrocarbon potential within the block.

RIL drilled the well CB10A-J1 to a total depth of 1957 metres in Part A of the block, with the objective of exploring the play fairway in the Miocene Basal Sand (MBS) of Babaguru formation and Eocence Pays of Kalol formation. Hydrocarbon bearing zone was identified at a depth of 1376-1385.5 metres in the Miocene Basal Sand (MBS) of Babaguru formation.

Conventional production testing was carried out in the interval of 1376-1381.5 m. The well flowed at a rate of 255 barrels of oil per day (bopd), through a 6-mm bean with a flowing tube head pressure of 180 psi. The discovery is significant as this play fairway is expected to open more oil pool areas, leading to better hydrocarbon potential within the block. The block covers an area of 635-sq km in two parts viz., Part A & Part B. RIL, as Operator, holds 100% Participating Interest (PI) in the block. While the entire block was covered with 2D seismic, nearly 80% of the block area also has 3D seismic coverage. Of the fifteen (15) exploratory wells drilled in the block by RIL so far, 11 are located in Part-A and the remaining 4 in the Part B of the block.

RIL is continuing further exploratory drilling efforts in the block. This discovery, named ‘Dhirubhai–48’, the fifth oil discovery in the block so far, has been notified to the Government of India and to the Director General of the Directorate General of Hydrocarbons. The potential commercial interest of the discovery is being ascertained through more data gathering and analysis. This discovery supplements RIL’s understanding of the petroleum system in the Cambay basin in general and the block in particular. Based on interpretation of the acquired 3D seismic campaign in the contract area, RIL has identified several more prospects at different stratigraphic levels with upside potential.

Source:http://news-views.in/reliance-industries-gas-in-cambay-basin/

Even as India Inc and the government rejoices over the settlement between Mukesh Ambani and Anil Ambani, it seems like the drama is not over yet. NDTV has learnt that Mukesh Ambani-led Reliance Industries now wants the government to clarify its gas allocation policy before it begins talks with RNRL over gas supplies.

For this the company has already sent feelers to the empowered group of ministers (EGoM) members seeking further clarity, sources said.

Sources said RIL has informed the government that there is no room for re-negotiation as per the government’s current gas utilisation policy.

Sources close to the development also say that RIL wants the government to play a significant role in renegotiations with RNRL. When contacted, RIL declined to comment on the news.

The Supreme Court had on May 7 rejected Anil Ambani Group firm RNRL’s claim for cheap gas from RIL as had been decided in a private family agreement of 2005. The apex court had directed the two companies to rework gas supply pact keeping the government’s pricing and utilisation policy in mind.

RIL and RNRL are likely to meet formally next week for renegotiations on the family pact that provided for Anil Ambani firm getting 28 million cubic meters per day of gas for 17 years.

Source:http://news-views.in/ril-seeks-clarification-on-gas-utilisation-policy/

Energy major Reliance Industries and Reliance Natural Resources Ltd will reach a gas supply agreement in the next two weeks, taking forward a patch-up between the billionaire Ambani brothers the Economic Times reported on Thursday.

The agreement, being negotiated between officials of the two companies, aims for Mukesh Ambani-controlled Reliance Industries to supply gas for 10 years from 2012 to power plants run by his younger brother Anil, the newspaper said, without saying where it got the information from.

After five years of a bitter feud that split India’s richest family, the brothers had unexpectedly called a truce on Sunday by ending a non-competition agreement that was a source of acrimony between them.

Earlier this month Anil lost a Supreme Court battle with Mukesh in a gas pricing dispute, with the court ordering the brothers to renegotiate within six weeks a private natural gas supply contract and gave the government control over setting gas prices.

The Economic Times said there was a possibility that Reliance Industries may pick up significant minority stakes in gas-based power plants owned by Anil Ambani’s group.

A spokesman for Reliance Industries said he had no comment on the report, while Anil Dhirubhai Ambani Group could not be immediately reached.

Source:http://news-views.in/ambanis-to-reach-gas-deal-in-2-weeks/

The Prime Minister’s Council on Trade and Industry comprising top industrialists and bankers met on Wednesday and reviewed the economic situation, particularly in the wake of the European financial crisis.

Chaired by Prime Minister Manmohan Singh, the meeting was attended by Finance Minister Pranab Mukherjee, Commerce and Industry Minister Anand Sharma.

Industrialists Ratan Tata , Mukesh Ambani and Sunil Mittal , and banker Chanda Kochhar attended the meeting.

The council is believed to have discussed the possible impact of the European financial crisis on the Indian economy, which is projected to grow by 8.5 per cent in the current fiscal.

On Monday, the Prime Minister had emphasised the need for giving a boost to the manufacturing sector for achieving a gross domestic growth of 10 per cent in the medium term.

The Trade and Economic Relations Committee was constituted on 3 May 2005 to enhance India’s economic relations with other countries in a coordinated manner.

Source:http://news-views.in/mukesh-ambani-attents-pm%E2%80%99s-council-of-trade-and-industry-meet/

Reliance Industries has suspended drilling of a well in its D3 block in the Krishna Godavari basin, as the rig, which was on hire from Transocean, developed problems.

A drillship of Transocean deployed in the Gulf of Mexico had exploded last month, causing a huge oil leak.

Hardy Oil and Gas, which is RIL’s partner in the KG-D3 block said there were “unresolved mechanical issues” with Transocean’s rig “Deepwater Expedition” which was drilling an exploration well in the block. RIL, which is the operator, holds the majority 90 per cent stake in the KG-D3 block; Hardy holds the rest.

“The KGV-D3-W1 exploration well (in D3 block) has been temporarily suspended due to unresolved mechanical issues associated with the blow out preventer (BOP) of the deepwater expedition drilling rig,” Hardy Oil said in a statement.

Hardy CEO Yogeshwar Sharma said: “In the interest of safety, the D3 joint venture has taken the considered decision to suspend the W1 well. The operator — RIL — is working towards mobilising an alternative rig at the earliest.”

The well, Hardy, said, will be re-drilled using an alternative deepwater rig. It did not say what would be the fate of deepwater expedition drilling rig.

A Reliance Industries spokesperson refused to comment on the issue.

US-based Transocean’s Deepwater Horizon had exploded on April 20, killing 11 people and causing a leakage in a well leased by British Petroleum (BP).

Mukesh Ambani – led, Reliance Industries Ltd (RIL) may rope in strategic investor for its Haryana Special Economic Zone project, which will be developede as a joint venture with Haryana government on about 9,600 acres of land.

RIL, in its annual report for 2009-10 has declared that it might bring in a strategic investor to halp maximize the potential of the investment made so far and make it a truly global investment destination. The report was issued to the shareholders for the company’s forthcoming annual general meeting to be held on Jun 18.

The RIL shares were trading down by 1.75 per cent, from the previous close on Monday, on the Bombay Stock Exchange (BSE). Meanwhile, the benchmark index, Sensex too traded lower by 1.65% at 16,198 points in the morning trades today. RIL shares have hit 52-week high at Rs 1,186.15 on June 12, 2009 and a 52-week high at Rs 859.15 on July 13, 2009.

The company has formed a joint venture with Haryana government to establish a large scale fully integrated economic enclave as SEZ. It has purchased about 9,600 acres of land and has obtained various approvals from government to establish the SEZ, the report said.

Source:http://news-views.in/ril-mulls-strategic-investor-for-haryana-sez/

RIL executive director PMS Prasad, a long-serving hand since the late 1980s, has been the company’s public face all through the gas battle — whether at Court Room No 1 at the Supreme Court, or the corridors of Shastri Bhavan that houses the petroleum ministry. Prasad was present on Friday too as the drama was about to be capped in the Supreme Court. ET caught up with him immediately after the judgement

What is it that came to your mind when the judgement was announced?

Relief! That it’s all over.

Who was the first to congratulate you after the judgement?

My boss Mukesh Ambani. He said it was a good job done and we need to get back to work. I also got a call from Mrs Ambani, who said we have to move on to the next generation of value creation.

How is Monday 9 am going to be different?

It’s going to be a different day. We are relieved of the tension. We have to get down to business and begin negotiations with RNRL.

Is this the best judgement?

Under the given circumstances, one could not hope for a better judgement.

How do you plan to go about negotiating the agreement with RNRL?

We have to negotiate a fresh gas sale and purchase agreement, which has to be bound by the broad parameters laid down by the court. Any fresh gas sales purchase agreement will have to uphold the price approved by the government, honour the utilisation policy of the government and various empowered Group of Ministers’ (eGoM) decisions with regard to utilisation.

What are the parameters that you will need to thrash out with RNRL?

The issues will include other parameters of GSPA like liability, penalty, alternative arrangements for fuel, the quantity of gas, quality of gas, etc. We have already concluded GSPA with several consumers and this GSPA will have to be similar to those.

Did the court mention the family MoU?

Yes. Although the court held the production-sharing contract was supreme, it directed RIL & RNRL to renegotiate in the context of the existing MoU; more like the MoU being a backgrounder under which we could renegotiate. But at all times, it is the supremacy of the PSC and the government decision that have to be kept in mind.

How long will you have to reach that agreement — do you have a timeframe?

We have to go back to the Mumbai HC within six weeks and then if we can mutually agree to a GSPA, it will need to be verified and approved by the government.

Are you saying RNRL & RIL can possibly be business partners where RIL is the gas seller and RNRL the buyer?

Yes! There is every possibility that we will work as partners and we will make a genuine effort to reach out and settle this GSPA in accordance with the court order and government law.

So, what is clear is that you are willing to provide gas at $4.2 mmBtu if the government approves the contract.
Yes, that is the price we will start negotiations at.

What are the key takeaways of today’s verdict?

It is clear that we have to follow all government policies and eGoM decisions and the PSC is the basis for all contracts. Secondly, the court order has also made it clear that the government has the right to determine prices and allocate the gas as per national interests. It has in a way only reaffirmed what the government has been saying. Thirdly, by directing us to renegotiate, but referring to the family MoU, the court has asked both RIL and RNRL to initiate talks and take action within six weeks.

How do you think this order will be received by investors, particularly global oil majors?

We expect the government to come out with a clear policy, which will state all that the verdict has said so that investors have complete confidence in consistency of policies. If companies like Exxon, Chevron and Shell can go to countries like Nigeria or Venezuela where there is so much political uncertainty, there is no reason why investors should not come to India.

Any regrets?

Yes. Too much time was wasted. There is not a single decision that the government has taken in the last seven months. And institutions like the Director General of Hydrocarbons, the petroleum ministry and even the CAG have suffered a huge reputation damage. And as for the advertisements in the newspapers where it was said that the petroleum minister was in RIL pockets.(laughs) I constantly looked for him but didn’t find him. We need to get back to business, value creation and positive thinking.

Source:http://news-views.in/pms-prasad-well-make-an-effort-to-reach-out-to-rnrl/