Archive for February, 2013

RIL- BP to Infuse $ 5 bn To Boost Gas Production In KG-D6 Fields

February 20, 2013

RIL (Reliance Industries Limited) and BP, British Oil Major, have announced their decision to invest $ 5bn (Rs. 27,127 crore) in the KG-D6 block, over the next three to five years. The agenda is to augment the development of gas reserves in the block and increase it to 4 trillion cubic feet.

The decision was announced following the joint meeting held in Delhi by Mukesh Ambani, Chairman and Managing Director of RIL, Bob Dudley, BP Chief Executive with M. Veerappa Moily, Petroleum Minister. The companies ensured that they would push the projects and quicken their operations as long as the government guarantees necessary clearances. RIL claimed to develop the field optimization plan that will cater to better compression and water handling and hence, work to increase the current production, starting from 2014.

David Cameron, British Prime Minister stated that BP has already emerged as the single largest British investor in India. He added that this decision by RIL and BP to invest $ 5bn in conjunction stands as a testament to the harmonious relationship between RIL and BP, exemplifying how two of British and India’s key companies can work hand in hand to boost investment, meet the growing energy needs , create job opportunities and pave the way for development.

Based on the company’s plans, it may require three to five years for them to invest in their newfound reserves in the satellite fields adjoining the current operating D1, D3 gas fields and MA oil and gas fields. Their investment plans would cater to enhancing facilities and capacities at D1, D3 and MA fields and development of satellite fields and R-series, following their approval from the government. They would also endeavor to enhance and present the architecture of KGD6 as the key hub of the east coast.

Moily opined that the gas produced from the projects will provide energy to scores of Indians, enabling them to meet their needs and effectively ease the burden on the country‘s shoulders by bringing down our import dependence. Iterating his support for the company’s investment plans, he claimed that his ministry would endeavor to offer required support and encourage such investments that would strengthen the domestic oil and gas divisions. He also ensured that they would assist these companies, helping them achieve economic feasibility.

BP has a 30% stake in Reliance Industries’ various oil and gas blocks in the country and both the companies ( RIL and BP) together have a 50: 50 joint venture, India Gas Solutions Private Limited ,to source and market gas in India.

Mukesh Ambani Optimistic on Tapping Solar Energy

February 12, 2013

Mukesh Ambani, Chairman, and Managing Director of Reliance Industries Limited has announced his decision to incline towards solar energy, to meet the energy requirements in the wake of increased awareness about the use of alternative energy sources. While the conglomerate’s mainstay business revolves around hydrocarbons, they are keen on shifting their focus to renewable energy.

In an interview with CNN International, Mukesh Ambani claimed that they would endeavor to transform into a renewable based company from its hydrocarbon roots that included coal, oil, and natural gas, in the next few years. He added that solar energy would be at the heart of their activities. When asked about the repercussion of the military strike on Iran and its impact on the oil prices, he claimed that there is sufficient spare capacity in the system to eke out, during such turbulent phases.

On a high optimistic note, Mukesh Ambani reinforced his faith in the future of the country and its long- term growth and stated that the country boasts of a 100 billion people where each of them will contribute to the system and pave the way for its prosperity. Apart from India, he spoke highly of the US’s decision to be independent of foreign imports of energy, predicting that the country will attain this feat in the next five to seven years. He claimed that this fundamental transformation in the US energy is a great move that will benefit countries across the world, besides serving to be an impetus to the country’s economic growth.

He also mentioned that India is on a trajectory path where it is making a progress more than in terms of GDP growth. Speaking about the growth the company has witnessed, he claimed that the conglomerate’s market value was 30-40 million in the 1980’s when he began his voyage whereas it has grown manifold today, owing to the pool of opportunities available in the country. Citing his father’s business purpose that intended to bring a societal change rather than limiting to making profits, he claimed that they were able to create a number of millionaires out of ordinary individuals who invested in the company. He also agreed to reduce the disparities in the country and making an effort to create equality among individuals. He deemed that his father, who made his own fortune out of nothing, to be his role model.