News: RIL likely to tie-up with Chevron
(PTI 18/04/2006) New Delhi - Reliance Industries Ltd, India's largest private oil firm, may tie-up with Chevron Corp of US to make joint bids for oil and gas blocks on offer in the latest round of New Exploration Licensing Policy (NELP).
"Chevron is keen to expand its presence in India. It has already agreed to spend $300 million to buy a 5 per cent stake in a refinery being built by Reliance. The company is now interested in exploration and production opportunities," a source familiar with the development said.
In the previous NELP rounds, Reliance had partnered Niko Resources of Canada and Hardy Oil of the UK. Niko had 10 per cent stake in blocks Reliance won in NELP-I while Hardy also took minority interest in the blocks Reliance won in subsequent four rounds. Reliance was the operator in all five rounds.
The California-based Chevron, which did not take part in the previous five rounds of NELP, had expressed keenness to participate in the latest tender at the road shows held in Houston last month to promote NELP-VI, the source said adding a partnership may result only after the firms are able to decide as to who would be the operator of the blocks.
Reliance officials were not available for comments.
Chevron, which currently has a lubricant blending and marketing operation in India, was also looking at partnering Reliance for marketing natural gas produced from the Indian firm's D-6 field in Krishna Godavari basin off the Andhra coast, sources said.
Last week, Chevron said it would spend about $300 million to purchase five per cent of Reliance Petroleum Ltd (RPL), a company formed by Reliance Industries Ltd (Reliance) to own and operate a new export refinery at Jamnagar, Gujarat. Sources said Reliance-Chevron may bid together for deep sea blocks on offer in NELP-VI. Off the 55 blocks on offer in NELP-VI, 24 are in deep sea.
RPL plans to invest $six billion in a 580,000 barrels per day refinery, which is expected to begin operation in December 2008.
As per its deal with Reliance, Chevron has future rights to purchase additional shares to increase its equity ownership to 29 per cent. The US firm would supply a third of crude oil that the new refinery needs from the spot market and help market high-octane fuel produced at the unit in the US and other western markets.
Reliance currently operates 660,000 barrels per day refinery in Jamnagar. The new refinery is designed to have a similar throughput capacity, but is expected to process heavier crude oil.
The new refinery would be the world's sixth largest refinery on a single site, and the two together would constitute the largest refinery complex in the world, based on current capacities.
"Chevron is keen to expand its presence in India. It has already agreed to spend $300 million to buy a 5 per cent stake in a refinery being built by Reliance. The company is now interested in exploration and production opportunities," a source familiar with the development said.
In the previous NELP rounds, Reliance had partnered Niko Resources of Canada and Hardy Oil of the UK. Niko had 10 per cent stake in blocks Reliance won in NELP-I while Hardy also took minority interest in the blocks Reliance won in subsequent four rounds. Reliance was the operator in all five rounds.
The California-based Chevron, which did not take part in the previous five rounds of NELP, had expressed keenness to participate in the latest tender at the road shows held in Houston last month to promote NELP-VI, the source said adding a partnership may result only after the firms are able to decide as to who would be the operator of the blocks.
Reliance officials were not available for comments.
Chevron, which currently has a lubricant blending and marketing operation in India, was also looking at partnering Reliance for marketing natural gas produced from the Indian firm's D-6 field in Krishna Godavari basin off the Andhra coast, sources said.
Last week, Chevron said it would spend about $300 million to purchase five per cent of Reliance Petroleum Ltd (RPL), a company formed by Reliance Industries Ltd (Reliance) to own and operate a new export refinery at Jamnagar, Gujarat. Sources said Reliance-Chevron may bid together for deep sea blocks on offer in NELP-VI. Off the 55 blocks on offer in NELP-VI, 24 are in deep sea.
RPL plans to invest $six billion in a 580,000 barrels per day refinery, which is expected to begin operation in December 2008.
As per its deal with Reliance, Chevron has future rights to purchase additional shares to increase its equity ownership to 29 per cent. The US firm would supply a third of crude oil that the new refinery needs from the spot market and help market high-octane fuel produced at the unit in the US and other western markets.
Reliance currently operates 660,000 barrels per day refinery in Jamnagar. The new refinery is designed to have a similar throughput capacity, but is expected to process heavier crude oil.
The new refinery would be the world's sixth largest refinery on a single site, and the two together would constitute the largest refinery complex in the world, based on current capacities.
posted by InCar Group Press Room at 22:50
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