Reliance Industries will be able to ramp up natural gas output from its Krishna-Godavari deep-sea fields to peak capacity of 80 million metric standard cubic metres a day (mmscmd) in the fiscal year to March 2013, Oil Secretary S. Sundareshan said on Wednesday.
The company is currently pumping 55-60 mmscmd, Sundareshan said.Reliance Industries was initially expected to produce 80 mmscmd by the end of this year.
Vimal, the flagship textile brand of Reliance Industries, today announced pan-India roll out of its new range of anti-microbial suiting fabrics. The in-house innovation, called DEO2, is thought to be a first for an Indian textile firm. It can arrest growth of fungi and bacteria to keep garments odourless in hot and humid conditions, the company said.
“This breakthrough innovation in textiles will give our product a cutting edge in market. It has been found safe for human use,” Reliance Industries president (Textile Business) Anand Parekh told newspersons. The company has filed an India patent for this in-house technology developed at its facility at Naroda.
“Vimal offers fabrics in the range of Rs 150 per metre to Rs 5,000 per metre, and customers will not have to pay a penny extra for addition of this technology,” Parekh claimed.
RIL manufactures more than 12,000 design-shade combinations every year in polyester wool and woollen, polyester viscose and woollen fabrics under the Vimal brand. “The size of suiting market in India is to the order of Rs 6,500 to Rs 7,000 crore only for the manmade fibre.”
“Currently, we are number two in the organized textile sector in terms of market share. With the launch of this new range our share should grow substantially,” he said. “Our new technology follows American Association of Textiles Colours and Colourist-147 Protocol, the highest protocol for any such fabric to pass, besides certifications from Indian agencies like ATIRA and BITRA,” Parekh said.
“The company is looking to introduce this technology in the shirting range of fabrics too,” he said. Vimal, which has supplies in the defence sector in India, is looking to introduce this fabric range for uniforms for armed forces, besides other government departments.
Source:http://news-views.in/reliance-industries%E2%80%99-vimal-launches-deo2-fabric/
India recorded the highest rise in natural gas output worldwide in 2009 after Reliance Industries’ eastern offshore KG-D6 field came into production, Economist Christof Ruhl said.
Mukesh Ambani-run RIL began gas production from the Krishna-Godavari basin in April, 2009, and its 60 million standard cubic metres per day output led to a 75 per cent jump in natural gas availability in the country to 140 mmscmd.
“Last year, India had the highest increase in production of natural gas worldwide. And I just checked, it also had the highest corresponding increase in consumption in natural gas worldwide,” BP Plc Group Chief Economist Christof Ruhl said. The jump in natural gas production in India was possible because the government allowed private sector firms to take a lead in exploration for hydrocarbons.
“When you look at countries where gas production is heavily government-controlled, like Russia, they had the biggest decline in gas production and consumption,” he said. “When you look at countries where new technologies have been developed like unconventional shale gas in the US… it was because they have an investment environment which is very competitive,” he said. Shale gas, trapped in sedimentary rocks, is said to hold the potential of doubling gas output in US.
Ruhl said that it was very clear who was left behind, as countries where natural resources were tightly controlled were less flexible.
Source: Economic Times
Reliance Industries Ltd (RIL) is close to finalising its third shale gas acquisition in the US. In what is being talked about as the company’s biggest shale gas deal so far, industry sources said RIL is in active talks to acquire a 50 per cent stake in a shale gas asset in North America. The acquisition is likely to be the biggest so far by IL, sources said.
In April, RIL had picked up a 40 per cent stake in Atlas Energy’s Marcellus Shale acreage for $1.7 billion, committing a capital expenditure of $3.5 billion over 10 years. For RIL, Marcellus is a strategic investment, as it is one of the most economically attractive unconventional natural gas resource plays in North America, due to low operating costs and proximity to the north-east gas markets in the US.
RIL picked up a 45 per cent stake in Pioneer Natural Resources’ Eagle Ford shale acreage for $1.3 billion in June. The deal was done through Reliance Eagle Upstream, an arm of RIL. Pioneer owns 46 per cent, while Newpeck holds nine per cent. Reliance Industries had agreed to make an upfront payment of $266 million in cash and contribute another $879 million towards Pioneer’s share of future drilling costs in the next four to six years.
Flush with revenues from its Krishna-Godavari (KG)-D6 gasfield back home, Mukesh Ambani’s RIL, sitting on cash reserves of close to Rs 22,000 crore has been on the lookout of acquisitions in US.
Shale gas extraction involves tapping natural gas trapped between layers of shale rock, similar to the extraction of gas from between coal seams.
More such acquisitions in shale gas projects in the US will follow, sources said. An RIL spokesperson refused comments on the development.
“Shale gas extraction is gaining momentum worldwide and especially in the US. An agreement is also expected to be signed between India and the US during the visit of US President Barack Obama later this year,” said a senior petroleum ministry official.
Besides acquisitions of shale gas assets by RIL in the US, ONGC is also likely to execute some agreements with US firms during President Obama’s visit to India.
Source:http://news-views.in/mukesh-ambani%E2%80%99s-ril-eying-third-us-shale-gas-deal-in-north-america/
Eight Indian companies, including oil major Indian Oil Corporation (IOC) and Mukesh Ambani-led Reliance Industries (RIL), have made it to the list of the world’s 500 largest companies compiled by Fortune.
The league of 500 elite companies for 2010 is topped by US retailer Wal-Mart Stores, followed by oil giant Royal Dutch Shell and another oil major, Exxon Mobil, in that order.
Besides IOC and Mukesh Ambani’s RIL, the other Indian companies in the list are steel-maker Tata Steel, auto company Tata Motors, oil entities Bharat Petroleum Corporation (BPCL), Hindustan Petroleum Corporation (HPCL) and Oil & Natural Gas Corporation (ONGC) and State Bank of India (SBI).
Tata Motors has made an entry into the list for the first time this year, while seven other Indian entities, which were part of the list in the previous year as well, are also featured in this list.
The list also features Citigroup, ArcelorMittal, Pepsico and Motorola, four companies led by people with Indian roots.
IOC has the highest rank of 125 among the featured Indian companies, followed by RIL at the 175th spot, SBI (282), BPCL (307), HPCL (354), Tata Steel (410), ONGC (413) and Tata Motors (442).
According to the magazine, IOC had revenues to the tune of $54.28 billion, RIL $41.08 billion, SBI $28.21 billion, BPCL $26.59 billion, HPCL $23.88 billion, Tata Steel $21.58 billion, ONGC $21.44 billion and Tata Motors $19.5 billion.
Vikram Pandit-led Citigroup is at 33rd place, with revenues of $108.78 billion, while NRI billionaire L N Mittal’s ArcelorMittal bagged the 99th position with revenues worth $65.11 billion.
Pepsico, run by Indira Nooyi, was ranked at 171st place with revenues of $43.23 billion and Sanjay Jha’s Motorola is at the 391st place, with $22.06 billion in revenues.
Source:http://www.reliance-news.com/mukesh-ambani/reliance-industries-makes-it-to-fortune-500-list/
Reliance Industries (RIL) intends to increase the competition in the fuel retailing space by opening around 5,000 outlets.
The country’s largest private sector oil and gas operator would initially start the 750 fuel stations, which were closed due to uncompetitive fuel rates compared with the public sector fuel stations. The company plans to eventually increase the number to 5,000 outlets after diesel prices are completely deregulated.
A senior RIL official told Financial Chronicle that the company is looking at all the strategic locations across the country especially in the north and the east, where it does not have a presence. Also, it is taking a fresh look at already identified locations to find if those have now come to be served by BPCL, HPCL or IOC pumps.
Mukesh Ambani’s company, at present, has its presence in 12 states and plans to have its footprints in other states too.
The government on June 25 deregulated petrol prices, as a result of which retail price of motor spirit was increased by Rs 3.50 per litre. It also announced that the empowered group of ministers had decided to deregulate diesel prices, but had allowed the retail price to be raised by only Rs 2 per litre for now.
Mukesh Ambani’s RIL has been supplying fuel at almost the same rate as public sector companies from 650 outlets mostly in the southern and western regions of the country. The company was forced to shut around 750 fuel stations in 2008 because it was not able to match the subsidized prices of HPCL, BPCL and Indian Oil.
The company has four types of petrol pumps which includes the Avon Plazas, where it provides all sorts of facilities to customers, such as restaurants, telephone facilities and lavatories. It also plans to open pumps with garages, where trucks and other vehicles can be repaired.
Morgan Stanley in a report said, “RIL should gain from the recent price hike and the deregulation of petrol prices, as it currently has around 1,500 outlets ready to tap gasoline marketing margins.”
Reliance Industries Limited (RIL) has announced discovery of another oil well in Cambay basin.
This discovery, named ‘Dhirubhai–50’, the seventh oil discovery in the block so far, has been notified to the Government of India and to the Director General, Directorate General of Hydrocarbons. The potential commercial interest of the discovery is being ascertained through more data gathering and analysis. This discovery supplements the understanding of the petroleum system in the Cambay basin in general and this block in particular. Based on interpretation of the acquired 3D seismic campaign in the contract area, several more prospects with upside potential have been identified at different stratigraphic levels.
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 CB-ONN-2003/1 is located at a distance of nearly 130-km from Ahmedabad, Gujarat in the Cambay basin. 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.
The site in Cambay basin is located at 130 km from Ahmedabad, Gujarat. “The potential commercial interest of the discovery is being ascertained through additional data gathering and analysis,” the company said in a statement to the Bombay Stock Exchange (BSE).
It is being reported that the well flowed about 410 barrels of oil per day and the company has 100 percent interest in the block. After the news, the scrip of RIL was trading at Rs. 1,081.80 which was up by 1.74 percent on the Bombay Stock Exchange (BSE).
Mr. Jyotindra Thacker, credited with driving equipment procurement and operations of Reliance Infocomm (now Reliance Communications) during its formative stages, has emerged as the likely choice to head RIL’s latest foray into telecom due to his background in IT and ability to procure equipment in a cost-effective way. Reliance Industries (RIL), India’s largest private sector company, is trusting its homegrown professionals to lead its Telecom venture. The refinery-to-retail major may choose its information technology systems head Jyotindra Thacker for the top job at newly-acquired broadband services company Infotel Broadband Services, according to sources.
Mr. Thacker played a major role in rolling out operations of Reliance Infocomm which built a nationwide fibre optic leading to cheaper tariffs. A person who had worked in Reliance Infocomm said Mukesh Ambani’s trusted lieutenant Manoj Modi and Jyotindra Thacker were in charge of negotiations with suppliers like Nortel and Qualcomm. “Of course, they managed to bring down costs from companies like Nortel,” said the person. Mr. Thacker is also a close relative of Mr. Modi.
After bagging broadband spectrum for 22 circles, Infotel is drawing up plans to procure equipment and roll out operations. “This is where Thacker’s expertise will come handy,” said a telecom industry executive who had worked with him. The company is likely to start with offering wireless broadband services, analysts had told ET. The retail broadband segment has 9 million subscribers now, but despite that only eight people in 1,000 have broadband access.
Source:http://www.indiaprwire.com/pressrelease/oil-energy/2010062854924.htm
Reliance Industries Limited, one of the India’s biggest groups keeps expanding itself globally as well as in the domestic Indian market. Reliance Industries Limited proposed a takeover of LyondellBasell, the third largest independent petrochemical company based in Netherlands last year. However in March, 2010, the company rejected a $14.5-billion takeover offer from RIL. According to the international media, the Netherlands-based company looks positive and expects more bids in the years to come. On being asked if the news is true, nobody was available to comment from Reliance Group. The Senior Vice President, LyondellBasell feels that the failure of RIL to acquire the Dutch firm may not be the end of the story. According to the industry analysts, the opinion of the executives of LyondellBasell can be seen as an attempt to tell RIL that fresh takeover will be beneficial for the company.
According to the reports published in the international media, Anton de Vries, the Senior Vice President, olefins and polyolefins, LyondellBasell was quoted as saying, “The bid didn’t work out, but I think it may come back in years to come.” RIL decision to takeover LyondellBasell came after the company declared itself bankrupt and it was RIL’s attempt to bring the company back to its status. The reports also reveal that the creditors thought their upside potential would be restricted if the Reliance Industries Limited could have taken over LyondellBasell with majority share to emerge from bankruptcy. LyondellBasell rejected Rs. 66,700 crore offer from RIL as the board of directors opted for restructuring the company instead of giving control to Reliance Industries Limited. The company thought in favour of its creditors as it was their main concern.
Last week, in the 36th annual general meeting, Mukesh Ambani, while addressing the shareholders, looked positive about further expansions and said, “Reliance will, of course, explore and seize opportunities elsewhere in the world and plant the Indian tricolour at many places on the global business map.” Mukesh Ambani further said that the company is setting up a new plant in Jamnagar which will produce over 1.5 million tonnes of olefin and it will be one of the largest facilities in the world. LyondellBasell declared bankruptcy in January, 2009 with debts mounting to $24 billion and according to the reports, later debt worth $18 billion was converted into equity. In the same year Reliance Industries bid for the takeover in order to take the company out of bankruptcy.
Source:http://news-views.in/reliance-industries-eying-lyondell-again/
Mukesh Ambani, chairman of Reliance Industries Limited, India’s most valuable private sector corporate, confirmed that the long term association with various US based companies to tap the Shale gas sector will be beneficial for the growth of RIL. Reliance Industries Limited announced that it is planning to have a joint venture with the US-based Pioneer Natural Resources Company of Irving. According to the reports, Reliance Industries Limited is going for this deal with its subsidiary Reliance Eagleford Upstream LP and under this, RIL will acquire 45 per cent in Pioneer’s core Eagleford Shale acreage position. As per the reports, following the transactions, all three companies, Pioneer, Reliance and Newpek will own 46%, 45% and 9% interests respectively. However the share price of Reliance Industries Limited fell to 0.7% as the investors are not happy with this deal to acquire Shale gas from US.
According to Deven Choksey, MD, KR Choksey Securities, RIL’s decision to buy 45 % stake in Pioneer Natural Resources, will help the company grow in terms of assets. He also feels that the deal will lead to the value appreciation of 20-22 per cent per share of RIL. The joint venture may also lead to increased current drilling program to approximately 140 wells per year within a short span of three years. As per the sources at Reliance Industries Limited, Pioneer Natural Resources Company of Irving will work as the development operator for this joint venture whereas Reliance Industries Limited will begin as the development operators in the years to come.
Reports reveal that Reliance Eagleford Midstream LLS, Reliance’s subsidiary will pay $46 million to acquire a share of 49.9 per cent. Under this agreement both the companies, Pioneer Natural Resources Company of Irving and Reliance Industries Limited will have equal governing rights, however the operator will be the Pioneer Natural. Speaking about this joint venture by RIL, Executive Director, Reliance Industries, Mr. PMS Prasad said, “Reliance is very pleased to establish a long-term partnership with Pioneer in the Eagle Ford shale. This transaction represents another significant milestone in Reliance’s efforts to grow its North American shale gas operations.”
Addressing shareholders at the company’s annual general meeting, Mukesh Ambani talked about the future plans related to Shale gas expansion and said, “Reliance aspires to build a significant position in the shale gas business. During the year, we will continue to pursue such joint development opportunities with the best operators as well as on our own to build a substantial upstream business in North America.”
Source:http://news-views.in/ril-and-pioneer-natural-resources-announce-eagle-ford-shale-jv/
