India's largest private sector company Reliance Industries Ltd (RIL) is likely to invest $20 billion over the next five years. According to a recent report by Macquarie Research, a major part of this investment will be in the proposed 2 mtpa greenfield cracker at Jamnagar along with its retail venture and KG Basin field development. RIL will invest around $3.9 billion and $4.1 billion in the greenfield project and in organised retail, respectively.
The report also reveals that RIL will spend Rs 22,470 crore in petrochemical expansions and expansion in petrochemical facilities, Rs 13, 400 crore in auto-fuel retailing by establishing 800 new retail outlets by FY 2010 and Rs 1,71,141 crore in RPL's (Reliance Petroleum Ltd) export-oriented refinery.
According to company sources, "RIL's strategy is to enhance vertical integration in the energy sector and capture value in the sector. The company is likely to invest more and more to strengthen its exploration, development and production activities." Reliance is the major exporter of petroleum products in the country and exports are expected to have accounted for 57% of RIL's total production is in the first three quarters of FY07. However, the retail petroleum marketing business is relatively smaller compared to the company's refining capacity. The company has earmarked Rs 7,000 crore for the expansion of its retail network, but the plan slowed down due to negative domestic marketing margins.
On the other hand, in the exploration and production segment, the company has drilled 23% of the KG D6 blocks so far, resulting in 27 discoveries with an estimated in place reserves of 35.4 tcf.
No comments:
Post a Comment