RIL offering significant discounts to petro chemical buyers
In a bid to bring down its inventory, Reliance Industries (RIL) is said to be offering significant discounts to customers. According to trade circles, customers who are willing to accept two months of supply at one go, are being offered around 5-10% discounts. This follows RIL’s price reduction for various petrochemical products like polypropylene (PP), polyethylene (PE) and polyvinyl chloride (PVC) early this month. It was the second successive price cut in the past couple of months.
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Reliance denies closedown of polyester and petrochemical plants
Report from ET.
Reliance Industries Ltd, India’s largest private sector firm, on Wednesday denied a report that it had shut five polyester and petrochemical plants due to lower demand.
Media had reported the company had closed five of its seven polyester and petrochemical units at Patalganga near Mumbai, amid falling demand for polyester products worldwide, citing unidentified sources.
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Niko Resources sees D6 gas development starting Q3 CY08
Niko Resources, the Canadian oil and gas major, sees D6 gas development starting in Q3 CY08, reports CNBC-TV18. “Volumes will ramp up to 2.8 billion cubic feet per day, or bcf/d. D6 oil development will start in Q3 CY08. Post that, volumes will ramp up to 40,000 barrels per day.” Read more
RIL ready to go to court over RCom-MTN issue
The current round of feud among the Ambani brothers is taking a new turn with sources in Reliance Industries Limited (RIL) saying that RIL is ready to go to court over Reliance Communications-MTN merger issue.
Ambani fued: ADAG may file lawsuit against RIL officials
The Reliance Anil Dhirubhai Ambani Group (RADAG), which is engaged in consolidation talks with the South African telecom major MTN on Wednesday said it was open to criminal proceedings against some officials of Reliance Industries Ltd (RIL) for what it claimed was fraudulent misuse of powers by them.
The statement was in response to a letter to MTN from Mukesh Ambani-led Reliance Industries Ltd (RIL), claiming the first right to refuse majority stake in Anil Ambani’s Reliance Communications, should they be put up for sale, based on a family pact two years ago.
Govt seizes 5 blocks from truant RIL
NEW DELHI: In a blow to Reliance Industries’ (RIL) exploration story, the government has confiscated the company’s five blocks in the Kerala-Konkan (KK) basin after it failed to meet the minimum work programme. Of the five blocks, one lies in offshore shallow water and four in deepwater. RIL held seven blocks in the basin.
The director general of hydrocarbons (DGH) has written to RIL that the blocks stand “relinquished” and it should immediately submit the data on them. The government, while taking over the blocks contracted to RIL for undertaking exploration & production activities, also rejected its proposal to hold a management committee meeting on May 7, 2008. When contacted, RIL declined to comment on the development.
Companies bidding for exploratory blocks under the new exploration licencing policy (NELP) have to commit work schedules—which envisage geological and geophysical studies, processing and reprocessing of 2D and 3D seismic data as well as drilling—based on which they are given points. They must complete a minimum amount of work in all these activities within a particular time-frame. RIL has lagged in the schedule.
Officials say in the case of two deepwater blocks—KK-DWN-2001/1 and KK-DWN-2001/2—DGH had asked RIL to seek an extension for exploration rights by submitting a bank guarantee ($8.86 million for each block) and liquidated damage (10% of $8.86 million each).
As RIL failed to respond to the notice, the two blocks stand relinquished, they said. RIL also ignored the oil regulator’s notice on three other blocks—KK-OSN-97/2, KK-DWN-2000/1 and KK-DWN-2000/3. DGH had written to RIL to either enter the next exploration phase or relinquish these blocks. It also asked the company to immediately submit all originals and copies of data on the blocks.
Earlier, RIL and exploration rival ONGC had approached the government seeking special R&D exploration status for their 17 Kerala-Konkan blocks. The R&D status, besides offering a breather of up to five more years for undertaking E&P work, would have given the two operators exploration holidays in the face of an acute shortage of deepwater rigs. The government, however, rejected their proposals on the ground of setting a wrong precedence.
Read More: http://economictimes.indiatimes.com/News/News_By_Industry/Energy/Oil__Gas/Govt_seizes_5_blocks_from_truant_RIL/articleshow/3057391.cms
RIL’s new refinery to change market dynamics
SINGAPORE: When Reliance Industries (RIL) opens its second huge refinery in Jamnagar this summer, world oil consumers may heave a sigh of relief at the injection of extra fuel into a market that has been short of capacity for years.
But the issue for physical oil traders is less about global fundamentals than regional arbitrage, as the surge in gasoline, diesel and jet fuel exports — the biggest one-off rise in world supply since Reliance launched its first plant in 1999 — will open up new trading opportunities while closing some old ones.
The 5,80,000 barrels per day (bpd) export-oriented refinery, now 90% complete and expected to be inaugurated in July, nine years after the first plant was finished, will have the edge over its peers as it can process cheap, low-grade crude into gasoline and diesel that meets strict Western standards.
A low-cost base and high complexity will offer unrivalled global reach for its fuel, allowing it to shift exports to the highest-priced market when full production starts in January.
It will play a swing supply role that will redraw traditional trade flows, and has already embarked on a robust marketing campaign in Europe, Mexico and East Africa, capitalising on delays and cost overruns faced by other big refinery projects.
“Reliance is being extremely aggressive in its marketing strategy. They are all over Europe marketing what will come up this year,” says Fereidun Fesharaki, head of FACTS Global Energy, which advises companies on refining and marketing strategies.
The Jamnagar plant will take Reliance’s total capacity to 1.24 million bpd, making it the largest facility in the world and going some way to alleviate a global shortage of capacity that has aided four years of above-average profit margins for refiners worldwide.
Even if global margins deteriorate, as many analysts expect, Reliance is likely to prosper, as it has invested in a plant that can use the world’s cheapest crudes — those with high sulphur, acid and metal content — to make the best products.
“The refinery was designed to produce optimum quality products that can be exported anywhere in the world, using the worst possible crudes out there,” says Al Troner, head of Asia Pacific Energy Consulting (APEC).
For physical traders for whom arbitrage is a cash cow, supplies coming from Jamnagar could be a threat. With India’s retail fuel prices fixed at below market rates and state refiners expanding quickly to meet domestic demand, almost all of the plant’s production is expected to be exported.
Fesharaki expects Reliance to ship at least 1,00,000 bpd of gasoline to the US through Chevron, which owns 5% of the $6-billion plant, equivalent to about a 10th of US imports, most of which comes from European plants.
It would also likely look to sell more product there directly, on top of the 4-5 million tonne of petrol and jet fuel it already exports to the US annually, trade sources said.
Reliance’s gasoline supply of up to 2,30,000 bpd — if all its output goes the West — could replace almost a third of Europe’s exports to the US, which uses 43% of the world’s petrol, and where refining shortages have been partly blamed for oil’s four-year rally to records near $120 a barrel.
“It makes sense for them to open up more trading offices around the world and try to market their products on their own,” the India-based trader said.
That’s a strategy already in play in Africa, where Reliance bought half of Tanzania-based retailer and storage firm Gulf Africa Petroleum Corp, which has 300 pump stations. East African fuel demand is surging, led by Kenya and Tanzania.
South Africa, which has seen a rise in diesel demand due to power outages, has turned frequently to Asia for diesel, as regular Middle East suppliers have cut exports due to firm domestic demand amid booming economies.
“Geographically speaking, it makes sense to send products to East Africa,” said PFC Energy analyst Stan Drochon. “But, there could be a spec issue, as Indian refineries will produce high quality spec and East Africa is looking for cheap product.”
Read more: http://economictimes.indiatimes.com/News_by_Industry/RILs_new_refinery_to_alter_oil_mkt_/articleshow/3047362.cms
Reliance to use closed fuel outlets for malls and multiplexes
Reliance to use closed fuel outlets for malls and multiplexes
Business Standard - Mumbai,Maharashtra,India
Reliance Industries Ltd (RIL), India’s biggest firm by market capitalisation, is drawing up plans to convert its fuel retail outlets, which were recently …
Reliance to use closed fuel outlets for malls and multiplexes
Reliance to use closed fuel outlets for malls and multiplexes
Reliance Industries Ltd (RIL), India’s biggest firm by market capitalisation, is drawing up plans to convert its fuel retail outlets, which were recently closed owing to unviable operations, into malls and multiplexes.
Reliance contracts for new Transocean drillship
Reliance contracts for new Transocean drillship
Oil & Gas Journal - Houston,TX,USA
By OGJ editors HOUSTON, May 6 — Reliance Industries Ltd., India’s largest private sector conglomerate, signed a 5-year drilling contract with Transocean …
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Dhirubhaism
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Date Time:01-12-2008 05:28
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