Archive for July, 2011

Reliance Industries amps up shale gas production process

July 27, 2011

Mukesh Ambani led Reliance Industries Limited (RIL) is all set to boost its shale gas ventures with three US energy majors, in an effort to augment production and process. Reliance Industries has already invested close to $ 400 million in its shale gas joint venture projects in the US, during the April-June financial quarter, which was the best ever financial quarter for Reliance in the last three years,

RIL has encountered the highest ever financial performance results for the quarter ending June 30th where earnings from its refining business helped RIL assume a 16.7% rise in net profits.

Reliance Industries has inked joint ventures with US based Chevron (RIL- Chevron), Carrizo (RIL- Carrizo) and Pioneer (RIL-Pioneer). Accelerated drilling and development activities, including two additional rigs were mobilized and 20 additional wells were drilled during the last quarter. 18 wells have already begun production during the quarter that ended on June 30th.

Individually, RIL-Pioneer JV is producing 165 million standard cubic ft per day (mscfd) of shale gas and 13,800 barrels per day of condensate. Production ramp-up is set to run as per plan, and the JV will likely focus on drilling in the liquid-rich areas of Eagle Ford in South Texas, US. The RIL-Chevron JV drilled nine additional wells during the quarter, with production rate from its 22 producing wells leveling at 51 mscfd during the quarter. RIL’s JV with Carrizo accounted for drilling of eight new wells during the quarter, taking total count of drilled wells to ten. RIL-Carrizo is will commence production in the newly drilled wells in the second half of the 2011-12 fiscal. The drilling was largely facilitated by additional capital expenditure and production level has been augmented to run at doubled rate by next fiscal year.

Acquisition of shale gas assets has been a significant venture for RIL this fiscal year, and it hopes to bank on the same by next year through gradual augmentation of production process.

RIL signs JV with Australia’s uranium mining firm UXA Resources

July 25, 2011

Mukesh Ambani led Reliance Industries Limited (RIL) has finally inked the deal with Australia based uranium mining major Uranium Exploration Australia (UXA) Resources which will see commencement of drilling programme in Nabarlek region in Australia’s Northern territory in mid August 2011. Nabarlek is the world’s third largest uranium mine, carrying high grade uranium deposits. The mineral ore content is expected to be around 104.68 million tonne and recoverable uranium or uranium oxide from these ores is expected to range up to 3, 36,000 tonne; a huge amount of reserve as far as uranium oxide is concerned.

The Northern Territory of Australia has granted three uranium exploration licenses to the joint venture between the two parties where RIL Australia (RILA), Reliance Industries Australian subsidiary, will have a 49% stake while Uranium Exploration Australia (UXA) Ltd will hold a 51% stake in the venture.

The joint venture between RIL subsidiary and UXA has set up plans for a drilling rig and acquired necessary heritage approvals and clearances for exploration and drilling at the Nabarlek site starting the middle of August.

Reliance Industries entered into a joint venture with UXA for prolific uranium exploration in Australia’s mineral rich site earlier in 2007. As per the JV, RIL Australia (RILA) will hold 49% interest in explorations in South Australia and in the Northern Territory and will incur 49% exploration funding.

This deal comes as at a time when RIL has just recently been granted official sanction to commence operations on RIL-BP venture, one of the most significant deals to be signed in the energy sector of India. While RIL-BP deal will see Reliance explore and develop India’s rich oil and gas reserves, its deal with UXA will result in prolific mining and development of uranium mineral deposits in the southern country.

RIL – BP deal gets the green flag from Finance ministry

July 21, 2011

Mukesh Ambani led Reliance Industries Limited (RIL), India’s largest private sector conglomerate, has been grated sanction from the finance ministry for its much acclaimed RIL-BP Plc deal. The RIL-BP deal, signed earlier this February, will see BP stake a 30 per cent share in Reliance’s 23 oil and gas exploration blocks, including its most prolific block off the cost of Andhra Pradesh, the Krishna – Godavari (KG D6) block.

Reliance Industries officials had sighted a formal approval from the Cabinet Committee on Economic Affairs (CCEA) on the stakes of the deal, given its magnitude and the large investment amount involved, earlier this February. According to constitutional amendment, government consent is considered as ‘deemed’ in the event it has not provided consent in the stipulated time period of 120 days from the day of request. But both RIL and oil ministry agreed to getting a formal sanction from the cabinet as Reliance Industries sought to abide by the New Exploration Licensing Policy (Nelp) under the PSC.

The finance ministry, on Wednesday, notified that the deal does not require CCEA nod and approving the $ 7.2 billion deal, the finance ministry and the oil ministry clearly supported BP’s deal to buy stakes in RIL.

The RIL-BP deal with see both energy majors come together in a 50:50 joint venture, under which sourcing and marketing of gas in India will be undertaken. The JV will also see establishment of infrastructure for receiving, transporting and marketing of natural gas in India. This deal will allow Mukesh Ambani led RIL to implement BP’s superior technical assistance in exploring deep sea oil and gas blocks, while BP will mark its entry in India’s exploration and production business. This will give the London based energy giant a chance to tap into Asia’s second biggest energy consuming nation. Consumption of energy products in India has risen by 190% over the past 20 years and is set for further increase by 115% over the next 20 years, at a rate of over 4% per annum, as per BP’s Energy Outlook 2030.

RIL-BP deal to get a nod of approval from Cabinet

July 7, 2011

Despite speculations of a deemed approval already in place, the oil ministry, on Wednesday, said that it has recommended the $ 7.2 billion (Rs. 32,400 crore) RIL-BP deal to the Cabinet Committee on Economic Affairs (CCEA) for a concrete sanction from the body. The petroleum ministry has supported the proposal that foresees Mukesh Ambani owned Reliance Industries Limited (RIL) delegate a 30 per cent stake in its 23 oil and gas blocks, including RIL’s gas producing KG D6 block – one of nation’s biggest gas assets – to London based British Petroleum (BP), paving way for realization of this milestone deal that welcomes significant FDI to the country via India’s leading energy enterprise.

The oil ministry has sought consent of cabinet on approval of this deal, given the magnitude of the deal. RIL had requested a sanction earlier this February and although according to constitutional amendment that suggests government consent as ‘deemed’ in the event it has not provided a consent in the stipulated time period of 120 days from the day of request, the oil ministry and RIL have both agreed to having a written approval framed by the cabinet.

The RIL-BP deal is a significant prospect to find ground in Indian domain. This deal will allow Mukesh Ambani led RIL to adopt BP’s advanced technical assistance in exploring its oil and gas blocks, while BP marks its entry in India’s exploration and production business with an opportunity to tap into the demand that clouds Asia’s second biggest energy consuming nation. According to BP’s Energy Outlook 2030, energy consumption in India has risen by 190% over the past 20 years and is likely to increase further by 115% over the next 20 years, at a rate of over 4% per annum. The deal is likely to stretch on a long term basis in order to ‘develop a gas-based economy in an efficient manner’, as per BP statements. This will enable BP to establish a ready footprint in India’s booming gas markets, while RIL employs BP’s expertise for harnessing the most out of its exploration blocks.

Mukesh Ambani: Steering RIL’s course of active Corporate Social Responsibility

July 5, 2011

An organization as big as Reliance Industries Limited (RIL), spearheaded by the dynamic global industrialist Mukesh Ambani, is expected to steer about welfare programs in favor of the community they function in. The Jamnagar facility in Gujarat developed and nurtured by Reliance Industries for over a decade is symbolic of a transition from rural to industrialized habitation, and coursing the new wave of community welfare is the corporate social responsibility team of Reliance.

The most recent act of benevolence and goodwill has come in the form of education drive that was spearheaded by representatives of Reliance Industries and local administrative body members from Jamnagar. The congregation set out to distribute school-kits, comprising of study supplies like books, pencils, compass box, school bag and more, to the children from and around the district. Around 1545 school-kits were hand-distributed by officials to 69 schools of 42 villages from nearby townships of Lalpur, Charntungi, Ragpar and Mota lakhia.

Leading by example, this drive undertaken by members of Reliance was an effort to promote education opportunities for children, especially girls. RIL has for long lent its support to the Gujarat state government’s efforts in encouraging young girls to pursue education and this time around, too, the organization put a step forward towards the noble pursuit.

Reliance’s Jamnagar facility is the largest refining complex in the world. The area was completely developed in 2008, and since then, it has reinstated Jamnagar’s presence not only in India, but world over. Spanning almost the entire length of the district, RIL has forever upheld the importance and need to adopt CSR measures in the area to support and uplift the surrounding villages and its people. Mukesh Ambani, himself, has maintained his views on a business’s contribution towards its society and its people. He firmly believes that it is a requisite of every industrial and business organization to ensure that its work is benefiting the larger good of the people and the society. That is the true measure of prosperity and growth.