Archive for December, 2012

RIL May Charge Market Prices For Natural Gas, As Per the 12th Five year Plan

December 31, 2012

The 12th five-year plan may come as a relief to Reliance Industries, India’s leading private sector company and energy giant. The prime minister, who is in charge of this plan, has permitted natural gas producers like Reliance to levy market prices, unlike the earlier policy that restricted companies from the same. The National Development Council (NDC) made an official announcement stating that the market forces will determine the prices of natural gas charged to the producers.

Presently, the natural gas produced in the country is priced at USD 4.2 per million British thermal unit, in most of the cases. However, this price is just a third of imported LNG (Liquefied Natural Gas). It is observed that the Rangarajan Committee suggested that the gas price is ascertained based on the weighted average of other international benchmark, making it possible for the producers to capitalize. However, this policy may come into effect only after the 2014 elections.

Goldman Sachs analysts claimed that the new change in the policy would lift the domestic gas price to $8.1/mmBtu (million metric British thermal unit) vis-à-vis the present price range of $2.52-5.65/mmBtu and two times more than the current price range of majority of the domestic gases i.e. $4.2 mmBtu. RIL along with its partner BP Plc have been for long, demanding the government to comply with the market price for natural gas, produced from their KGD6 fields.

Supporting the change in the policy, the Prime Minister stated that the price of natural gas in the country is much lower than the international price range. He also mentioned that there will be no effort involved in leveraging energy or maximizing its supply, if the present scenario prolongs where the domestic energy prices are much lower.

The 12th year plan also mentioned that the current fiscal would witness a tremendous increase in the demand for the natural gas from the present 194 million standard cubic meters to 286 mmscmd. It also estimated this demand to increase to 466 mmscmd by 2016-2017.

Analysts believe that this policy will have an immediate positive effect on RIL’s stock wherein every $ 1/mmBtu rise in gas price will lead to a 3% increase in its FY 15E EPS.

RIL had earlier written to the Oil Ministry, opposing uniform marketing margin for natural gas given that there is a huge disparity in the associated costs and risks taken into consideration by different agencies.

10 Years of Successful Schooling- Dhirubhai Ambani International School

December 21, 2012

Nita Ambani, known for her unremitting efforts towards the cause of education, has been spearheading and managing Dhirubhai Ambani International School (DAIS). As an educationist, she launched the school ten years back and is today a proud chairperson of this coveted school. Onthe 10th anniversary of the school, Nita Ambani, wife of Mukesh Ambani, the most powerful business tycoon of the country and owner of the largest private sector company, RIL,believes that it has been dream run for her and others associated with the school.

She had dreamt of creating a school thatprovides education that is at par with the international standards and is capable of changing the face of schooling in the country. She hoped to create a school where learning would be fun for students, and contenting, for teachers. According to her, it was challenging, to strike a perfect balance between infusing Indian values in the system and offering education of international standards. Within a short span of time, the schoolhas attained a feat of being ranked as one of best schools in India. The outstanding results the school has delivered, the top- notch global universities offering placements for its students and their first set of alumni being recruited by the best organizations, all stands as a testament to its success. Her focus throughout the year has been to pave the way for overall development of the student.

Busting the way a school is commonly perceived, she envisioned to create a happy school filled with happy children, teachers, staff, and parents. Committed to the cause of providing quality education, she has always considered the child‘s development as the cornerstone of the school’s activities and hence, wanted to build an institution where parents would aspire to send their children.Well begun is half done and she has been happy that they have laid a strong foundation and will now endeavor to build an eternal educational institution of excellence.

She has always been of the opinion that the country needs to focus more on educational issues like improving the teacher- child ratio. Being a teacher herself, she has been well- versed with the process of teaching and is hence, driven to the cause of enhancing the educational standards in the country.

While her twin kids- Isha and Akash graduated from the Yale University and Brown University respectively, her youngest son is a student of DAIS.

Apart from the iconic educational institution that Nita Ambanihas set- up, she hopes to launch the Sir Hurkisondas Nurrottumdas Hospital, next year.Apart fromthat, she is also occupied with the initiation of Reliance University.

Reliance India –BP Bag Egypt Crude Oil Supply For 2013

December 12, 2012

India’s leading oil and gas player, Reliance Industries Limited (RIL) and BP (Britain’s Oil Major) have successfully bagged the Egypt’s crude oil supply tenders, for 2013. The offer from Egypt’s Ras Gharib Terminal makes RIL the winner of bulk (18 cargos) that renders it around 1.5 million tones of heavy crude. With this order put into effect, BP will receive around 15 cargos in 2013. BP had announced last September about its commencement of work on natural gas production project in Egypt’s Mediterranean basin. Others who have won the contract include Vitol, Dynacom and Petraco.

Egypt’s natural gas production is known to surge by twenty percent with this offshore project brought to play. Along with this announcement, it was also made known there were two more discoveries in Nile Delta in August that could further add to its production.

The announcement came after the declaration of Export –Import Bank of US extended its support to RIL by sanctioning it a loan of $ 2.1 billion worth of loan and guarantee. This transaction is deemed to the single – largest ever one offered to a company including the direct loan amount and the guarantee offered.

RIL won the Egypt crude oil supply contract, irrespective of the fact that the BP had announced its selling of natural oil gas to Japan, based on the US Domestic gas prices that are higher than the usual gas oil prices for the first time. This contract will have the price for the BP gas source from the production in Egypt and Caribbean region.

According to sources, the company might infuse a colossal amount of $ 10 billion in Egypt period for over a period of five years. The association RIL- BP is also known to invest around $ 7.2 billion in India. Based on the contract, the Cabinet Committee on Economic Affairs had confirmed a purchase of around 30% participating interest in the 21 oil and gas blocks of RIL including its mainstay, KGD6 block, by BP.

The two energy giants have been jointly drilling on a satellite discovery that borders the gas fields in the KGD6 block. BP recently announced that it is optimistic about the growth potential of its Indian partnership, after its 16-month journey with RIL. The association has served to be beneficial for both the parties as RIL avails access to sophisticated technology, enabling it to leverage its hydrocarbon assets in a better way and on the other hand, it allowed BP to foray in India and expand its footprint globally.

RIL Rolls Out MiFi Devices – Access to Its 4G ServiceFrom Any Device

December 5, 2012

Reliance Industries Limited (RIL ) seems to leave no stone unturned in launching its 4G services with a bang. It has announced the rollout of MiFi devices that will enable Smartphone and tablet users to use high-speed internet from their current devices and immediate adoption of its services. With the conglomerate set to launch its 4G services in mind – 2013, it will ensure that the ground is set fora successful rollout.

With Smartphones and tablets being the new face of communication and increasing dependence of people on these devices for their internet usage, Reliance Infotelwill have to lure these users. Since there is only a single device available at present that tethers with the frequency of 4G services offered in India- 2300 MHz, the company was in dire need of a device like MiFi to eke out the complications involved in the conversion process. MiFiby RIL will competently convert 4G signals into WiFi making it easy for Smartphone users to access internet from their current devices.

According to sources, Reliance – Infotel may initially rollout its services in Delhi and Mumbai. The installing and laying of this fiber cable networks has already started in these cities. It has also tied up with several top – notch companies known for specific functions including Ericson and Samsung for network building, Microsoft for the provision of security solutions and IBM for integration of internet related services. In this way, RIL has roped in all the premium companies to ensure that each of its activities that cater to 4G isflawless.

Since the time when MukeshAmbaniwon the auction and the rights for a 4G launch, everybody is eager to know and comprehend with its every move. The launch of 4G services in India by RIL may change the face of telecom space and the way people use the internet in our country. At present, BhartiAirtel is the only company other than RIL with access to 4G services. However, RIL turned the tide in 2010 when it won pan India rights for 4G. Analysts now predict that the behemoth will cut down the prices of these services substantially as a strategy to increase its reach among the masses. The high-speed internet services coupled with an increased speed in data delivery and download may introduce individuals to a never before experienced technology.

While 4G services may seem tempting, not many would have considered the option of buying a new mobile for the same. However, RIL cleared the decks by introducing MiFi that will enable one to connect to its 4 G service through WiFi. Thanks to MiFi, even voice consumers will be able to have access to this service.

RIL’s MiFi launch will also mark the set up of this device globally for offering access to voice and data services, for the first time. In order to give more teeth to its device strategy, the company is known to employ Ericsson to build 30,000 WiFi hotspots in Delhi and Mumbai and has been targeting commercial buildings, offices, and mall.