LONDON — Reliance Industries has resumed drilling of the KGV-D3-W1 exploration well on the KG-DWN-2003/1 (D3) license in the Krishna Godavarai basin offshore eastern India.

The Transocean rig Frontier 534 is drilling the well in a water depth of 1,653 m (5,423 ft), according to partner Hardy Oil & Gas. The target depth of the well, designed to test the hydrocarbon potential of Mio-Pliocene sands, is 3,514 m (11,529 ft) MD.

The KGV-D3-W1 was spudded April 2 by Transocean’s Deepwater Expedition, but had to be suspended at the end of May, at a depth of 2,608 m (8,556 ft) MD, due to an unresolved problem with the rig’s BOP control system.

Reliance Industries plans to reopen all of its fuel stations in the country and is currently selling petrol and diesel at the same rates as state firms, a company statement said on Wednesday. Reliance, which operates the world’s biggest refining complex at Jamnagar in Gujarat, shut down its petrol pumps in 2008 as crude prices surged towards $150 a barrel.

At the time the Indian government subsidized fuel sales by state firms, knocking private retailers out of the market. “If the government announces diesel deregulation then diesel, like petrol, will also be available at market rates. Further to this Reliance will resume operations across all pumps, pan India,” the Reliance statement said. Retail sale of petrol and diesel are again viable since the end of June when the government lifted all controls on petrol and raised administered prices of other fuels including diesel. Reliance owns more than 1,400 fuel stations in India.

The government plans to free diesel prices also, but the deputy chairman of the Planning Commission told Reuters in an interview the government would set diesel rates for the next few months. Essar Oil, the only other private refiner in India, and Reliance had together captured about 17 percent of domestic retail market for diesel and accounted for 10 percent of petrol sales by 2005 before they were forced to shut down their pumps.

“Now, with the deregulation of petrol, there is a level playing field and Reliance petrol will now be sold at the same price as that of the other oil companies,” the statement said.

Mukesh Ambani-led Reliance Industries (Solar Group) and construction company Punj Llyod are among the five companies which have bid for solar power project to be set up in the Parliament House.

“We have received bids from five companies for the solar energy project to be set up in Parliament,” TPS Sidhu, the Chief Executive of Punjab Energy Development Agency (PEDA), which is executing the project, told PTI here.

Three other companies, which have submitted bids, are Wipro Ecoenergy, Lanco and Gurgaon-based DD Solar23 India.

“We are evaluating the bids and successful bidder will be (for Parliament project) announced within next 10 days,” he said, adding that the project was expected to be completed within next three months.

PEDA, which has been asked by the Centre to implement the solar power project in Parliament, had invited bids for commissioning of power project with a capacity of 80 KW using solar photovoltaic technology and its operation and maintenance for 10 years.

“Out of 80 KW of power generation, 50 KW of power will be fed into grid system and rest will be used for battery back up at the Parliament house annexe,” he said.

The Centre had allocated the solar power project for the Parliament House over four months back to PEDA keeping in view of its expertise in non-conventional and renewable energy resources.

“The main objective of this project is to demonstrate and popularise the renewable and new energy resources for the power generation and it has been awarded under the Special Area Demonstration Programme of the government,” he informed.

Besides setting up solar power generation unit, other components of the project are installing water heating system of 2,000 litres capacity, illumination of the house and setting up a small biogas plant of half a tonne capacity per day for the Kitchen in Parliament.

“The other components of the project will be done in a phased manner,” said Sidhu.

State-owned PEDA is a nodal agency for promotion and development of renewable energy projects including solar, biogas and small hydel projects in Punjab. It is also a nodal agency for facilitating project for carbon credit under Clean Development Mechanism.

NEW DELHI: Government auditor CAG said it has completed auditing the expenditure that Reliance Industries incurred in developing Krishna Godavari basin gas field D6, which was at the centre of an inflated billing controversy.

“The audit is complete at CAG end. We are currently in the final compilation stage after which the report will be sent to the Oil Ministry for comments,” a CAG official said.

CAG, which went into the $ 8.8 bn cost incurred by Reliance in producing gas from the nation’s largest field, had examined and received replies on its audit comments from the Mukesh Ambani-led firm.

“In another 30 days, we plan to send it (the report) to the Petroleum Ministry,” the official said.

When asked if Reliance had fully cooperated with the Comptroller and Auditor General (CAG) in submiting records pertaining to KG-D6 fields, the official said: “They have given, if not 100 per cent, but mostly what we wanted.”

The CAG plans to complete the entire audit process, which will include incorporating oil ministry’s comments on its findings, by November.

“In 3-4 months time, we will be done with the special audit report. Based on the ministry’s comment, CAG will decide the necessity of placing the report in Parliament,” he said.

Since the audit of KG-D6 is not a statutory audit, as is being done in case of public sector firms, the premier auditor would decide based on ministry’s comments on its findings if the report has to be placed in the Parliament.

“Our intention of the audit is to find out if there was any loss of revenue to the government because of any improper increase in capital expenditure in the KG-D6 fields,” he said.

Government is to get between 10 to 90 per cent of the revenue generated from sale of gas over the life of the field after deducting expenses incurred by the operator (Reliance).

“While it took a while to persuade the ministry for the CAG audit, it then took the ministry some time to persuade the companies as this audit was the first of its kind. So the delay of over two years,” he said.

CAG started audit of Krishna Godavari basin D6 field on December 21 last year. It, however, faced some difficulty in accessing new documets it sought after completing the first round of scrutiny. But within a month, RIL complied and the premier auditor made good progress thereafter.

Petroleum Ministry asked CAG to audit the accounts of RIL, which faced allegations of gold-plating gas field costs that has increased four-fold to $8.8 bn.

RIL had on August 17 agreed to an audit by CAG but the nation’s premier auditor could put its house in order for the audit only by December.

CAG’s scope of audit of PSC in respect of the block KG-DWN-98/3 (KG-D6) awarded to RIL, for two financial years – 2006-07 and 2007-08, with access to records of previous years linked to transactions of these years.

Reliance Industries Limited (RIL) today announced that its subsidiary, Reliance Marcellus II, LLC, has signed definitive transaction agreements to enter into a Marcellus Shale joint venture with United States based Carrizo Oil & Gas, Inc. (NASDAQ: CRZO).

Under the proposed transaction, Reliance will acquire a 60% interest in Marcellus Shale acreage in Central and Northeast Pennsylvania that is currently held in a 50‐50 joint venture between Carrizo and ACP II Marcellus LLC, an affiliate of Avista Capital Partners. Pursuant to the transaction, Reliance will acquire 100% of Avista’s interest and 20% of Carrizo’s interests in the joint venture. Upon completion of the transaction, Reliance and Carrizo will own 60% and 40% interests, respectively, in a newly formed joint venture between the companies.

Reliance will pay a total consideration of $392 million, comprising of $340 million of cash and $52 million of drilling carry obligations. The drilling carry obligations will provide for 75% of Carrizo’s share of development costs over an anticipated two year development program. The joint venture will have approximately 104,400 net acres of undeveloped leasehold in the core area of the Marcellus Shale in Central and Northeast Pennsylvania, of which Reliance’s 60% interest will represent approximately 62,600 net acres. This acreage is expected to support the drilling of approximately 1,000 wells over the next 10 years, with a net resource potential of about 3.4 Tcfe (2.0 Tcfe net to Reliance). The transaction allows for additional growth in the development acreage, at pre‐agreed terms.

Carrizo will serve as the development operator for the joint venture and Reliance has the option to act as a development operator in certain regions in the coming years as part of the joint venture. The transaction is anticipated to close by mid‐September 2010. Commenting on the joint venture, Mr. Walter Van de Vijver, President, International E&P Business, Reliance Industries said, “Reliance is excited about the opportunity to further expand presence in the Marcellus Shale in the United States. We are pleased to establish a long‐term partnership with Carrizo, which has demonstrated operating expertise in the shale plays. The proposed joint venture will supplement strengths achieved through our recent joint ventures and further expands our footprint in North American shale gas operations.”
Jefferies & Company, Inc. acted as lead financial advisor and Vinson & Elkins LLP acted as legal counsel to Reliance. BNP Paribas and Credit Agricole Corporate and Investment Bank provided strategic advise to RIL in respect of this investment.

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/