Financial Daily from THE HINDU group of publications
Thursday, Apr 13, 2006
Financial Daily from THE HINDU group of publications Thursday, Apr 13, 2006 |
|
|
|
|
|
|
|
Corporate - Mergers & Acquisitions Markets - IPOs Our Bureau
`Energy' pact Chevron gets the right to get additional 24 per cent equity in RPL. Reliance and Chevron will jointly evaluate application of mutually selected refinery technology.
Mumbai , April 12 Reliance Industries Ltd announced that Chevron Corporation is picking up a five per cent stake in Reliance Petroleum Ltd for $300 million. Chevron India Holdings Pte Ltd Singapore, a wholly owned subsidiary of the $193.6-billion Chevron Corporation is buying the stake. The agreement provides Chevron with the right to acquire an additional 24 per cent of the equity in RPL on conclusion of the collaboration agreements between Chevron and the company.
Largest FDI
"If Chevron acquires additional equity, this will rank as one of the largest investments from any multinational company in a single project in India. This will also be one of the largest foreign direct investment in India," Reliance said in a news release. The company said that the decision of Chevron to acquire an equity stake in an upcoming refinery project is a "reaffirmation of the company's strengths in project execution and commissioning coupled with its's talented human resource base". "This also heralds India's entry into the league of being a major player in the refinery sector in the world," the release said.
More pacts signed
In addition to this agreement, the company also signed two memoranda of understanding with Chevron. The first MoU sets out the principles of partnership by which the company and Chevron plan to optimise the crude supply and product offtake and marketing of the RPL refinery. Under this MoU, Reliance and Chevron will jointly evaluate application of mutually selected refinery technology. The MoU also envisages that the parties would cooperate towards setting up a technology development centre in India. The second MoU sets out the intent of both companies to collaborate in other areas in the energy value chain. This establishes a significant foreign collaboration in the refinery sector in India.
`Significant step'
"Chevron is a pioneer who has recognised the inherent strengths of India in the energy sector. I am happy that Chevron has taken the first significant step in participating in the growth story of India as a refinery destination in the World," the release said quoting Mr Mukesh Ambani, Chairman and Managing Director, Reliance Industries Ltd. "I look forward to working with Reliance in the development of the new refinery and jointly pursuing additional opportunities," the release said quoting Mr Dave O'Reilly, Chairman and Chief Executive Officer, Chevron. Shares of Reliance Industries fell by Rs 6.35 to Rs 828.55 in Wednesday's trade on BSE. The initial public offering of Reliance Petroleum opens on Thursday.
Related Stories: More Stories on : Petroleum | Mergers & Acquisitions | IPOs
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|