RIL to become India's largest gas producerFrom ET, 12 Jun, 2008, 2001 hrs IST, PTI
Mukesh Ambani-led Reliance
Industries is all set to become the single largest gas producer in the country with a more than 50 per cent market share. Production of gas from KG-D6 and other oil blocks will catapult Reliance into the single largest gas producer in the country with more than a 50 per cent marketshare, RIL's Chairman and Managing Director, Mukesh Ambani told
shareholders of the company here on Thursday. With ever-increasing demand for oil and petroleum products, the company's foray into exploration and production will contribute significantly to value creation. In addition to development of KG-D6, the company will continue its ongoing efforts of exploration and development of various blocks, Ambani said at the 34th annual general meeting of the company. The high
oil price environment and stretched refining systems would also benefit the company, he added.
Reliance to explore alternative energy segment Reliance Jamnagar refinery will cost half that of others RPL set for world record in construction of refinery: Ambani Govt may replace K-G cap Reliance to explore alternative energy segment Reliance sells 0.005 pct term diesel to Vitol-tradeReliance to commission new refinery in 3-6 monthsWe expect this business segment to deliver sustainable long term returns, Ambani said. Ambani said that Reliance's efforts were now strongly focused on two projects, the development of the KG-D6 block and the implementation of the new refinery at Jamnagar, through its subsidiary RPL. Our new refinery will be operational in the second half of FY09. The completion of the refinery will increase Reliance's ability to process crude oil from 0.66 to 1.24 million
barrels per day, equivalent to about 2 per cent of global capacity," Ambani said.
The 5,80,000-barrel-a-day refinery is being built adjacent to Reliances existing unit of 6,60,000-barrel-a-day plant at Jamnagar. The commissioning of oil and gas production systems will make Reliance one of the largest deep-water oil and gas companies in the world. Ambani said that the company had 41 discoveries to date and an overall success ratio of 63 per cent. Its coal based methane (CBM) block in Sohagpur has a capacity of 3.76-trillion cubic feet. The East-West gas pipeline from KG-D6 will be completed by the year-end, he added.
Deep water exploration activities would be expanded with the additional of six rigs by
H2 FY09. "We have been allotted two blocks in Yemen, three in Peru and have gross, contingent reserves of five billion barrel oil equivalent. The gross reserves is accretive to target 10-billion barrels of oil equivalent, Ambani said. Ambani also informed that Reliance will sell gas this year at $25 per barrel equivalent.
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Reliance: Largest gas producer in IndiaRIL Retail to create over 5 lakh jobs From Rediff.com
Reliance Industries [
Get Quote] is all set to become the single largest gas producer in the country with a more than 50 per cent market share, RIL's Chairman and Managing Director Mukesh Ambani told the company's shareholders in Mumbai on Thursday.
With ever-increasing demand for oil and petroleum products, the company's foray into exploration and production will contribute to value creation.
In addition to development of KG-D6, the company will continue its ongoing efforts of exploration and development of various blocks, Ambani said at the 34th annual general meeting of the company.The high oil price environment and stretched refining systems would also benefit the company, he added.
We expect this business segment to deliver sustainable long term returns, Ambani said.
Reliance's efforts were now focused on two projects -- the development of the KG-D6 block and the implementation of the new refinery at Jamnagar, through its subsidiary RPL, he added.
"Our new refinery will be operational in the second half of FY 09. The completion of the refinery will increase Reliance's ability to process crude oil from 0.66 to 1.24 million barrels per day, equivalent to about 2 per cent of global capacity," Ambani said.
The 5,80,000-barrel-a-day refinery is being built adjacent to Reliances existing unit of 6,60,000-barrel-a-day plant at Jamnagar.The commissioning of oil and gas production systems will make Reliance one of the largest deep-water oil and gas companies in the world.
The company had 41 discoveries to date and an overall success ratio of 63 per cent. Its coal based methane block in Sohagpur has a capacity of 3.76-trillion cubic feet, Ambani said. The East-West gas pipeline from KG-D6 will be completed by the year-end, he added.
Deep water exploration activities would be expanded with the additional of six rigs by H2 FY 09.
"We have been allotted two blocks in Yemen, three in Peru and have gross, contingent reserves of five billion barrel oil equivalent. The gross reserves is accretive to target 10-billion barrels of oil equivalent, Ambani said.
Ambani also informed that Reliance will sell gas this year at $25 per barrel equivalent. Reliance's two major deepwater fields were poised to come on-stream with a combined capacity of around 5,50,000 barrels of oil equivalent per day. This is about 44 per cent of India's current indigenous production, Ambani said.
At current crude oil prices of $135 per barrel, they imply an annual saving of Rs 1,14,000-crore (Rs 1,140-billion) in energy imports by India," he added.
On its polyester business, Ambani outlined his growth strategy which included both greenfield investments and acquisitions."We will consolidate our position (in the polyester business) by pursuing greenfield investments and acquisitions in the entire value chain," Ambani said.
A new refinery at Jamnagar, expected to be operational in six months, would add a further 9-lakh tonne per annum to the company's polypropylene capacity.
"Our new 2.5-million tonne per year paraxylene manufacturing facility in Jamnagar will provide a platform for growth in our polyester business in India and overseas," he said.
Presently, Reliance commands a global marketshare of seven per cent in the polyester fibre and yarn business. "Our capacity is more than double the capacity of our nearest competitor globally," Ambani said.
The RIL chairman described organised retailing as 'a major growth platform for Reliance.'
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RIL to sell gas at $25/bbl: Mukesh Ambani- From Moneycontrol.com
Mukesh Ambani, CMD of
Reliance Industries said that the refinery and gas production will start in H2 FY09. He also informed that Reliance will sell gas this year at USD 25 per barrel equivalent. That is at one-fifth the cost of the global price of oil.
“Gas sales which will commence this year will be at an equivalent to only USD 25.2 per barrel of crude oil as compared to a current market price of USD 135 per barrel of crude oil,” said Ambani.
He said the exports have grown at 49% compounded over last five years.He said they are pursuing greenfield investment and acquisition in polyester operations. The new refinery at Jamnagar will add nine lakh tonne per annum to polypropylene capacity, he added.
He also said thet they will remain committed to long-term potential of petroleum retail business and leverage retail opportunity via majority stake in Gulf Africa Petro. There are also eight new discoveries across four offshore basins during the year, he added.
He said the CBM block in Sohagpur has in place capacity of 3.76 tonne cubic feet. The East-West gas pipeline from KG-D6 will be completed by year-end, he added. He said there will be an expansion of deep water exploration with six additional rigs by H2 FY09. He said, " We have allotted 2 blocks in Yemen, three in Peru and have gross, contingent reserves of five billion barrel oil equivalent.The gross reserves is accretive to target 10 billion barrels of oil equivalent."
"Organised Retailing is major growth platform for Reliance. Reliance Fresh format has grown to 600 stores. The retail business will generate over five lakh new jobs over next five years. We have also received regulatory nod for SEZs in Gurgaon, Jhajjar, Jamnagar," he said talking about growth of retail business at the annual gneral meeting.
Excerpts from Mukesh Ambani’s speech at the company’s AGM:
On exports:
Reliance has maintained its leadership position as India’s largest exporter. Over the last five years, exports have grown at a compounded growth rate of 49%. Last year, It’s capital expenditure stood at Rs 19,503 crore, which is its highest till date. This huge capital expenditure spend was primarily driven by exploration and production business. This is expected to create immense value for all shareholders for years to come. India’s largest private sector refiner is one of India’s largest contributors to the national exchequer primarily by way of payments of duties and taxes.
On polyesters:
The polyester business has been the first growth platform for the company. It is also the first business in Reliance to make an overseas acquisition, i.e. Trevira in Europe. It has also been the first business in the RIL stable to become the largest in the world in its domain. It continues to build on the polyester platform. The acquisition of the assets of Malaysia’s Hualon exemplifies this direction. The company was later renamed as Recron Malaysia, which is the largest integrated textile facility globally. The acquisition has increased the polyester capacity of Reliance by 25% to 2.5 million tonne per annum. Today, Reliance is a formidable player in the polyester fibre and yarn business with a global market share of 7%. Our capacity is more than double the capacity of our nearest competitor globally.
On petroleum refining business:
The petroleum refining business is set to create history. RIL will be commissioning its new refinery at Jamnagar this year earlier than schedule. Off late, there have been many announcements about setting up new refineries in various parts of the world. They are yet to fructify. Ours is the first large refinery added in recent times to meet the global refining shortage. The new petroleum refinery at Jamnagar would add 580,000 barrels per day to global capacity. Consequently, the petroleum-refining capacity at Jamnagar would leap from 0.66 to 1.24 million barrels per day.
Almost 2% of the global petroleum refining capacity would be in one location, Jamnagar, which will be the refining capital of the world.
The refinery will earn considerable foreign exchange by exporting superior quality products to the US, Europe, and Asian markets. It will make a valuable contribution to generating employment and to the country’s economic growth. It will strongly position Jamnagar as the refining hub of the world. It will strengthen India’s position as a major supplier of high quality refined petroleum products in the world.
Four years back, RIL embarked on setting up petroleum retail outlets across the country. It garnered a 14% share of the diesel market in India in a very short time. However, as crude oil prices began to rise dramatically to record highs, the government decided to provide subsidies only to public sector petroleum retailing companies. The absence of a level playing field between private and public sector petroleum retailing companies gave rise to an unviable situation. Therefore, the company has no alternative but to suspend sales of petrol and diesel from its retail outlets, especially because of the high price environment.
However, the company remains committed to the long-term potential of the petroleum and retail business both in India and overseas. This is highlighted by the acquisition of a majority stake and management control of Gulf Africa Petroleum Corporation, which has petroleum retail networks in several African countries including Tanzania, Uganda, and Kenya. We are now strategically positioned to leverage this opportunity.
On discoveries:During 2007-08, Reliance added a glorious chapter in its upstream oil and gas exploration and production initiative. There were eight new discoveries across four major offshore basins in India ‑- Mahanadi, Krishan Godavari, Cauvery, and Gujarat Saurashtra ‑‑ this year. We have thus proven the existence of petroleum systems in four of these major basins. Currently, we have 41 Dhirubhai discoveries to date. Our overall exploration success ratio is 63%. This is considerably higher than global averages. Oil discovery in the Cauvery basin is a significant milestone in this frontier basin, due to the extent of which our earth scientists have analyzed it.
On steps to beat talent crunch:
For sustainability, we believe that a talent pipeline fed by a supply chain of best in the class will hold us in good state. Towards this, Reliance has adopted a multi-pronged approach.
We will first nurture homegrown talent through relevant skill and competency development programmes. Second, we will recruit top talent through concentrated efforts from premier technology and management institutions. Third, we will put in place a performance oriented employee stock option plans, the largest in the country. In a collaborative effort, we are working with leading education institutions to help build more robust and industry-oriented programmes.
In all these endeavours, we have placed a trust in youth. This in turn brings vigor and dynamism to our organization. It also sets in process creating of a new generation of young Reliance leaders who can herald this into a bright future.
For more : Jun 12, 2008
Company: Reliance Industries Ltd
Subject:
Reliance Industries - Chairman's Statement
Reliance Industries Ltd has informed BSE about the Chairman's Statement delivered at the 34th Annual General Meeting of the Company held on June 12, 2008. Attachment Click here for more detailsSource: www.Theeconomictimes.com , www.rediff.com and http://www.moneycontrol.com/ . We thank (will be grateful to) the owners of the above articles/sites/sources/Govts for allowing/referring this. We are just providing the link/information of business updates from the leading sources for the benefit of readers. Viewers are strictly advised to take own decision in Stock buying and make verification about the information. Blog is not responsible for any faulty information.