Archive for November, 2014

RIL Assists the Indian Navy in Shooting Underwater Videos of the TRV 72

November 20, 2014

As the latest collaboration between Reliance Industries Limited (RIL) and the Indian Defense Force, the Indian Navy has taken help from the country’s largest private sector company to shoot underwater videos of the TRV 72.

The TRV 72 is a torpedo recovery vessel that sank on November 6th approximately 38 nautical miles off the coast of Visakhapatnam. 4 persons on this vessel including an officer and 3 sailors are still missing.

RIL’s Role in Assisting Recovery Initiatives of the TRV 72 Wreck

The videos can be taken by deploying a Remotely Operated Vessel (ROV).The chartered vessel of RIL, MV Olympic Canyon that is essentially used for offshore work in the Krishna-Godavari Basin is equipped with a ROV and has the ability of operating even at 1000 meters below sea level.

According to the initial reports, the wreck of the TRV 72 has been looked at in an upright position at the depth of approximately 370 meters. The Indian Navy will now perform an analysis of the video footage and chart out a course of action.

While addressing the media on board INS Jalashwa, about 20 nautical miles of Visakhapatnam coast, Flag Officer Commanding Eastern Fleet, Rear Admiral A.B. Singh said, “The footage could give us a clue about the missing persons and as well as the reason for the ship’s sinking.” He made this address during the ‘Day at Sea’ programorganized by the ENC, as part of its upcoming Navy Day celebrations.

He added, “About 15 ships and a number of helicopters and planes were used in the operation. We covered a large area and have found some debris to the coast of Mahabalipuram. The current is very strong during this part of the year, and there is all possibility for the debris to drift up to Karaikal.”

The search and rescue operations were called off after the Indian Navy covered a large area of the ocean over a period of 10 days.

Upgrading Defense Infrastructure

While talking about the deployment of the ROV from RIL’s chartered vessel, the Admiral admitted that the Indian Navy is not currently equipped with the technology used for deep sea operations such as salvaging sunken ships. He acknowledged the need to depend on other sources for such infrastructure.

Recently, the Government of India got rid of the foreign investment rule that expected a single Indian entity to hold at least 51% stake in a defense venture. This helped RIL’s Reliance Aerospace to acquire licenses to manufacture weapons and combat aircrafts. The removal of this rule also allows engineering company Punj Lloyd to manufacture rocket launchers, torpedoes and combat vehicles.

In October, the government made an official statement saying that a committee has cleared 19 proposals for licenses of defense manufacturing made by a host of large Indian corporate houses such as the Mahindra Group, Bharat Forge Limited and Tata Group.

Even before the changes in the foreign investment rules, the Department of Industrial Policy and Promotion had reduced the list of items within the defense sector that required licenses.

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Nita Ambani Addresses India’s Developmental Challenges through Reliance Foundation

November 14, 2014

Under the leadership of Chairperson Nita Ambani, Reliance Foundation has been instrumental in addressing a variety of developmental challenges faced by India. By making use of innovative and sustainable solutions, the foundation has been able to contribute significantly towards rural transformation, urban renewal, education, health and the protection of our nation’s heritage, culture and art forms.

By empowering the underprivileged and infusing social transformation, it is the foundation’s vision to become the leading facilitator of social development.

Launch of Sir H.N Hospital and Reliance Foundation Research Center

This facility, located in the heart of South Mumbai, was re-dedicated by Prime Minister Narendra Modi on October 25th. The new hospital consists of two heritage wings along with a 19-story building complete with modern amenities designed to enhance healthcare service delivery.

In a recent interview, Nita Ambani said, “It’s a digital hospital. It’s future ready. Every information can be accessed from your mobile. We use Cloud and 4G for collecting and storing records for all tests and patients. It’s all digitalized but at the same time we haven’t lost the human touch. The CT scan can be completed in one and half seconds and that helps in reducing radiation. Operation theatres are imported from Germany.”

In addition to this, the hospital has also been able to bring back 50 doctors and surgeons from the United States and United Kingdom to work full-time with the facility.

Nita Ambani’s Endeavors in Education

Her journey in the field of education commenced 25 years ago when Reliance Group was setting up the polyester plan in Patalganga. During this time, Nita Ambani worked towards opening her first school for the employees and their children. Today, the foundation runs 13 schools where 16,000 students are educated. In addition to this, the foundation also runs evening classes at the Dhirubhai Ambani School in Mumbai by partnering with NGOs that work with underprivileged children. It is her aim to leverage digital technology to bridge the gap between rural and urban India. Someday, the foundation hopes to organize classes in remote villages through correct use of technology.

Encouraging Sports through Reliance University

In addition to introducing a full spectrum of courses in science, arts and engineering at the much awaited Reliance University, the foundation also intends to leverage this platform to promote sports. Nita Ambani’s entry into the sporting world happened by default first through the Indian Premier League (IPL) and now through the Hero Indian Super League (ISL). With ISL, she hopes to reach out to the country’s youth and encourage them to pursue sports as a profession. It is her ultimate goal to watch India play in the Football World Cup.

Carrying on the Legacy

Inheriting the hardworking approach adopted by Nita Ambani and husband Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited (RIL), their children Isha and Akash recently joined the family business. The youngest son Anant too exhibits interest in philanthropy through his interest in animals. The family has created a huge space in Jamnagar where the animals that are adopted are kept and taken care of.

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RIL and Pioneer Natural Resources Company Plan to Divest the Eagle Ford JV

November 10, 2014

Reliance Industries Limited (RIL) along with its partner Pioneer Natural Resources Company plans to divest their joint venture in the Eagle Ford Shale and midstream business. This will not include any of Pioneer’s upstream drilling assets for which RIL is also a joint partner.

This decision arrives at amidst speculations that the recent oil price drops may result in a rise in the volumes of mergers and acquisitions in the already thriving oil and gas sector. A number of other industry players are already looking at restructuring their portfolio of assets.

According Price Waterhouse Coopers, between the months of July and September 2014 alone, a total of 78 oil and gas deals have been signed. With deal values totaling up to $123 billion, an 81% rise has been marked in deal volume and there has been a 640% rise in deal value as compared to the same period last year.

Shifting Focus on Shale Gas Explorations

The US-based Pioneer Natural Resources Company holds 50.1% stake in the joint venture and is also the operator of the project. In a statement, a spokesperson from this company said that the divestment is with an aim to focus more on the shale gas explorations business. RIL that holds 49.9% stake in this venture through its arm Reliance Holding USA is also in the pursuit to sell of its stake.

A spokesperson from RIL in a separate statement to India bourse said, “”Reliance has also agreed to consider a divestment of its shareholding in this joint venture. The current investment in EFS Midstream LLC is $208 million.”

The midstream business of Eagle Ford currently owns and runs 10 gathering plants and about 460 miles of pipelines. This 4 year old joint venture is expected to generate a cash flow of about $100 million in the coming year.

Scott D Sheffield, Chairman and CEO of Pioneer Natural Resources said, “The sale of EFS Midstream would allow us to strategically redeploy capital to our core, oil-rich Spraberry/Wolfcamp assets in the Permian Basin of West Texas, where we are successfully transforming the substantial resource potential we delineated in 2013 into strong production growth,”

He further added, “We currently have no plans to divest our Eagle Ford Shale upstream assets. The sale of EFS Midstream is not expected to impact our ability to export processed Eagle Ford condensate.”

Successful Join Ventures for RIL

On media reports last month regarding RIL’s plans to sell its stake in the Eagle Ford joint venture, the company’s Chief Financial Officer, Alok Agarwalhad said, “Eagle Ford is the most successful joint venture and it has gained a very decent amount of valuation in the last 12 months. Our partners and we are looking at what’s best for the JV going forward.” Media reports valued RIL’s stake in this joint venture at $4.5 billion.

In addition to the Eagle Ford joint venture, RIL also owns stakes in 2 other shale ventures within the US. The company owns 40% stake in Chevron’s Marcellus shale asset and 60% stake in the assets of Carrizo Oil and Gas Inc based in central and northeast Pennsylvania.

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