Business Daily from THE HINDU group of publications
Thursday, Feb 22, 2007
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Business Daily from THE HINDU group of publications Thursday, Feb 22, 2007 ePaper |
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Corporate
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Alliances & Joint Ventures Industry & Economy - Petroleum
Our Bureau
The details One of the issues likely to be discussed between Chevron and RIL is a possible tie-up for the midstream activity. Chevron may assist Reliance in developing an exploration block in the Krishna Godavari basin.
Discussions on various business collaborations is likely to take place between the US-based company's Chairman and Chief Executive Officer, Mr David J. O' Reilly, and Mr Mukesh Ambani, Chairman and Managing Director, RIL, during their meeting in Mumbai. The Chevron Chief left for Mumbai on Wednesday. Subsequently, he with Mr Ambani will visit Reliance Petroleum Ltd's (RPL) Jamnagar refinery, where Chevron has a 5 per cent stake. The Chevron chief is on a four-day visit to India, starting Tuesday. According to sources, one of the issues likely to be discussed between Chevron and RIL is a possible tie-up for the midstream activity. Midstream venture is part of the broad understanding reached between the two entities last year to collaborate in exploration, production and refining, among others. With Reliance making big plans for tapping gas distribution and marketing business, this is one area which the two are likely to discuss in detail. As per the earlier understanding, the two would discuss and negotiate formation of a joint venture gas marketing company for the sale of gas not currently committed to customers and which is sourced from production under petroleum licences in India in which both RIL and Chevron participate. Subsequently, as per the understanding, this joint venture would evaluate the potential for importing liquefied natural gas.
steering committees
The two entities have also set up steering committees to discuss the broad issues agreed upon in the MoU. Besides, midstream activities, Chevron may assist Reliance in developing an exploration block in the Krishna Godavari basin. Late Tuesday night, while declining to comment on any speculations, the Chevron chief told presspersons that the primary purpose of the visit was to review the Jamnagar refinery construction. Chevron has 5 per cent in RPL's 580,000 barrels per day refinery, being built at Jamnagar. Speaking after a meeting with the Petroleum Minister, Mr Murli Deora, late last night, he said, ``We are here for a few days. We are going to visit the refinery under construction where we are partners. That is the primary purpose of the visit. We want to see the construction ourselves.'' On whether Chevron would consider increasing stake in the refinery from 5 per cent to 29 per cent he said, ``we have an agreement with them. If everything does well we will see whether to go further together. I cannot speculate on the timing.''
Related Stories: More Stories on : Alliances & Joint Ventures | Petroleum | Reliance Industries Ltd
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