Reliance sees Colombian exploration deal soon | Latest News India - Hindustan Times
close_game
close_game

Reliance sees Colombian exploration deal soon

None | ByReuters, Davos (switzerland)
Jan 25, 2006 08:15 PM IST

Reliance's likely move into Colombia comes amid a growing prominence of India's companies on the world stage.

India's largest petrochemicals producer Reliance Industries expects to seal a deal on exploration rights with Colombia's state oil company Ecopetrol by the second half of 2006 at the latest.

HT Image
HT Image

"We would like the maximum amount of exposure. We are in negotiations with the government," Reliance Chairman Mukesh Ambani said on Wednesday at the World Economic Forum in Davos.

Hindustan Times - your fastest source for breaking news! Read now.

"We hope (to have a deal) at the latest by the second half of this year," said Ambani, declining to say how much Reliance would spend on buying the exploration rights in Colombia's Gabriel Block.

Reliance's likely move into Colombia comes amid a growing prominence of India's companies on the world stage.

Earlier this week, Reliance said it planned to raise $1.1-$1.3 billion in an initial public offering by a subsidiary to help fund a $6 billion refinery expansion and also planned an initial $750 million move into retail.

Ambani said Reliance was open to foreign investors taking part in the IPO. Under Indian rules, up to 60 per cent of new shares issued under a flotation can be allocated to foreign investors.

Using the proceeds from the IPO and $3.5 billion in debt, Reliance's unit Reliance Petroleum plans to nearly double capacity at its 660,000 barrels-per-day facility, making it the world's single largest oil refinery.

Ambani said once the new refinery was up and running all of its petroleum products would be exported. He said Reliance would own 80 per cent of Reliance Petroleum's equity after the IPO.

The refinery will be based in a special economic zone in Jamnagar in Gujarat.

Reliance's shares finished down 0.76 per cent at Rs 688 in Mumbai.

Unveiling Elections 2024: The Big Picture', a fresh segment in HT's talk show 'The Interview with Kumkum Chadha', where leaders across the political spectrum discuss the upcoming general elections. Watch now!

Get Current Updates on India News, Election 2024, Arvind Kejriwal News Live, Bihar Board 10th Result 2024 Live along with Latest News and Top Headlines from India and around the world.
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Thursday, March 28, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On