RIL to invest USD 4 bn in hydrocarbon space

Mumbai, Oct 12 (UNI) Country's largest private sector company Reliance Industries Limited (RIL) plans to invest USD 4 billion of risk capital to realise its hydrocarbon potential in the country.

RIL has already pumped in USD 2 billion in the sector.

Addressing the annual general meeting of the Company today, RIL Chairman Mukesh Ambani said that the gas discoveries in Krishna Godavari basin (KG basin) are expected to be in production in the second half of the fiscal 2008-2009.

The gas production rate will be equivalent to about half a million barrel of crude oil per day, representing 30 per cent of country's oil import.

At current prices of gas and crude oil, this means a savings of Rs 36,000 crore (USD 9 billion) annually, Mr Ambani added.

Targeting 10 billion barrels of oil equivalent of 2P gross reserves globally, RIL has plans to expand its oil and gas portfolio outside of India, that currently spans across Oman, Yemen, Colombia, East Timor, Northern Iraq and Australia.

According to sources, marketable securities with Reliance including investments in Reliance Petroleum have a value at current market prices of approximately Rs 110,000 crore (USD 28 billion).

This apart, RIL has also plans to expand the Paraxylene capacity from 1.9 million tonnes per year to 4.5 million tonnes, bringing in 15 per cent of the global Paraxylene capacity.

Jamnagar refinery project is expected to be completed ahead of schedule at nearly half the capital cost of international refineries of similar size.

The Company has also plans to build a Reliance Centre for Technology at Navi Mumbai to go with an Innovation Council at Pune, Mr Ambani informed.

In the last five years, the market capitalization of the Company grew from Rs 41,989 crore (USD 8,604 million) to Rs 382,259 crore (USD 97,267 million), while the exports were doubled in last one year to Rs 66,627 crore (USD 15,327 million).

RIL shares were trading at Rs 2640 on Friday morning in Bombay Stock Exchange (BSE), up by 0.39 per cent from its past close of Rs 2629.65.

UNI