SEBI approves Chevron's equity participation in RPL

Mumbai, Apr 20 (UNI) The Securities and Exchange Board of India (SEBI) has approved the proposal of the Chevron Corporation of USA for acquiring an equity stake in the Reliance Petroleum Limited (RPL), a subsidiary of the Mukesh controlled Reliance Industries Limited (RIL).

Sources told UNI today that the USD 184 billion energy major Chevron has agreed to be a promoter of the multi-crore oil refinery project of RIL at its Jamnagar complex in Gujarat.

On April 12, Chevron, the fifth largest integrated energy company in the world, had signed an agreement with RIL to pick up five per cent stake in RPL for USD 300 million (nearly Rs 1,320 crore).

The deal provided the option for Chevron to ramp up its equity holding upto 29 per cent in future. At the price of Rs 60 per share, Chevron is expected to pump in USD 1.74 billion for acquisition of 29 per cent stake in RPL, sources said.

This would also make Chevron the second largest promoter of RPL after the RIL's holding of 51 per cent followed by the public holding of 20 per cent.

RPL is setting up a 29 million tonnes per annum refinery plans mainly for export of fuels to north America and Europe at a cost of Rs 27,000 crore. This plant, situated near RIL's existing 33 million tonne refinery, is being financed through debt of Rs 15,750 crore and equity of Rs 11,250 crore including proceeds from the ongoing public offering of RPL shares at a price of Rs 57-62 per share. RPL's plant will be commissioned by August 2008.

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