Oil Minister Murli Deora today said Reliance Industries need not club marketing margin with the gas sale price for purpose of calculating royalty -- a statement that overturns a suggestion by oil regulator DGH.
DGH had wanted the $0.135 per million British thermal unit margin, which RIL charges towards marketing cost and risks, to be added to the sale price of $4.20 per mmBtu for calculating royalty and profit share to the government.
"The Production Sharing Contract (under which firms like RIL produces oil and gas from areas given by the Government) does not envisage sharing of revenue earned by the contractor (RIL) on the marketing margin between the government and the Contractor," Deora told Rajya Sabha.
"The marketing margin is beyond the delivery point and arises as a result of Gas Sale and Purchase Agreement signed between the seller and the buyer," Deora said in a written reply to a question by member Amar Singh.
"The PSC provides for sharing of revenue between the government and the contractor (RIL) of the sale of gas at the said price at the delivery point," he said, adding that marketing margin was settled between buyer and seller and Government has neither decided nor approved the same.
Deora said marketing margin arises as a result of Gas Sale and Purchase Agreement (GSPA) signed between the seller and the buyer and was mutually settled between them.
"The rate of marketing margin neither in the case of KG D6 gas nor in any other case has been decided or approved by the government," he said.
RIL charges marketing margin costs, incurred in customer identification, execution and sales of a Gas Sales Agreement, customer registration and activation, gas sales planning, daily gas sales operations, gas accounting, invoicing and collection and establishment of regional offices, and risks like penalties and liquidated damages, volume risks, credit risks and claims and settlement of disputes.
Source:http://economictimes.indiatimes.com/news/news-by-industry/energy/oil-gas/RIL-need-not-pay-royalty-on-marketing-margin-Deora/articleshow/5607383.cms
Tuesday, February 23, 2010
Monday, February 22, 2010
NTPC buys more gas from RIL
State-owned power utility NTPC has signed agreement to buy 1.2 million metric standard cubic meter a day (mmscmd) of more gas from Reliance Industries' (RIL) eastern offshore KG-D6 fields at the government-approved price of $4.2 per million British thermal unit (mBtu).
NTPC signed Gas Sale and Purchase Agreement (GSPA) to buy more gas on February 16, taking its total supplies from KG-D6 to 1.81 mmscmd, sources in the know said.
The government had in October 2009 allocated NTPC 3.85 mmscmd, beyond the 0.61 mmscmd it had earlier signed for.
But NTPC did not want to use the KG-D6 gas at its Kawas and Gandhar power plants in Gujarat, which are connected with pipelines ferrying KG-D6 gas from the Andhra coast. So, a swap arrangement was worked out wherein state-owned gas utility GAIL India was to divert gas from other sources to NTPC and supply Reliance gas to its existing customers.
However, limitations in GAIL's pipeline capacity restricted the swap to just 1.2 mmscmd, sources said, adding that additional gas supplies to NTPC would begin by next week.
NTPC's Anta plant in the national capital region currently gets 0.61 mmscmd of KG-D6 gas.
Source:http://www.business-standard.com/india/news/ntpc-triples-kg-d6-gas-offtakeril/86281/on
NTPC signed Gas Sale and Purchase Agreement (GSPA) to buy more gas on February 16, taking its total supplies from KG-D6 to 1.81 mmscmd, sources in the know said.
The government had in October 2009 allocated NTPC 3.85 mmscmd, beyond the 0.61 mmscmd it had earlier signed for.
But NTPC did not want to use the KG-D6 gas at its Kawas and Gandhar power plants in Gujarat, which are connected with pipelines ferrying KG-D6 gas from the Andhra coast. So, a swap arrangement was worked out wherein state-owned gas utility GAIL India was to divert gas from other sources to NTPC and supply Reliance gas to its existing customers.
However, limitations in GAIL's pipeline capacity restricted the swap to just 1.2 mmscmd, sources said, adding that additional gas supplies to NTPC would begin by next week.
NTPC's Anta plant in the national capital region currently gets 0.61 mmscmd of KG-D6 gas.
Source:http://www.business-standard.com/india/news/ntpc-triples-kg-d6-gas-offtakeril/86281/on
RIL fulfilling Lanka IOC’s oil demand
Almost 75 per cent of Lanka IOC Plc's petrol and diesel demand for the first six months of the current fiscal has been met by Reliance Industries Ltd (RIL) led by Mukesh Ambani.
“For the first six months, of the 300,000 tonnes of products imported almost 225,000 tonnes have come from RIL,” Mr K.R. Suresh Kumar, Managing Director, Lanka IOC, told Business Line.
“In 2008-09 we had imported 550,000 tonnes of products of which 30-40 per cent came from RIL. Sri Lanka has just one refinery (owned by Ceylon Petroleum) with a capacity of 2 million tonnes, and the demand is close to 4 million tonnes for all petroleum products. Thus, to meet the balance demand we had to import.”
Reliance operates two refineries in Jamnagar -- one with capacity of 33 million tonnes and the other of 27 million tonnes.
Declining to share the numbers at which Lanka IOC sources these products from RIL, he said, “Lanka IOC procures through a tendering process and RIL has bagged orders against tenders. It is at a very competitive price.”
Lanka IOC sells auto fuels through its 151 retail outlets with plans to add 20 during the current calendar year. On how much is the company's performance impacted by the volatility in international crude prices, he said, “The performance is affected. As there is not much of storage capacity in the country, we have to import more frequently resulting in high costs.”
Besides, the company also incurs revenue loss on sale of petrol and diesel as the price is fixed by the Sri Lankan Government. “Though there is constant interaction between the Government and the companies the prices are not completely in sync with international prices,” he said.
Currently, petrol is sold at Sri Lankan Rs 115 a litre (Indian Rs 50 a litre) and diesel is sold for Sri Lankan Rs 73 a litre (Rs 30 a litre). The revenue loss on petrol is Sri Lankan Rs 8 a litre and on diesel is Sri Lankan Re 1 a litre.
The company has no plans to enter the cooking fuel (domestic LPG) retailing business, he said. “For Lanka IOC the main revenue generator has been the retailing business. But now there is a conscious effort to change it by diversifying into bunker fuels and bitumen.”
On if the company has any plans to set up a refinery in Sri Lanka, he said, “It will not be economically viable.”
The company recently got Govt concessions for exports and is looking at exporting lubes to West Asia, Singapore, and Maldives.
Source:http://www.thehindubusinessline.com/2010/02/22/stories/2010022250900200.htm
“For the first six months, of the 300,000 tonnes of products imported almost 225,000 tonnes have come from RIL,” Mr K.R. Suresh Kumar, Managing Director, Lanka IOC, told Business Line.
“In 2008-09 we had imported 550,000 tonnes of products of which 30-40 per cent came from RIL. Sri Lanka has just one refinery (owned by Ceylon Petroleum) with a capacity of 2 million tonnes, and the demand is close to 4 million tonnes for all petroleum products. Thus, to meet the balance demand we had to import.”
Reliance operates two refineries in Jamnagar -- one with capacity of 33 million tonnes and the other of 27 million tonnes.
Declining to share the numbers at which Lanka IOC sources these products from RIL, he said, “Lanka IOC procures through a tendering process and RIL has bagged orders against tenders. It is at a very competitive price.”
Lanka IOC sells auto fuels through its 151 retail outlets with plans to add 20 during the current calendar year. On how much is the company's performance impacted by the volatility in international crude prices, he said, “The performance is affected. As there is not much of storage capacity in the country, we have to import more frequently resulting in high costs.”
Besides, the company also incurs revenue loss on sale of petrol and diesel as the price is fixed by the Sri Lankan Government. “Though there is constant interaction between the Government and the companies the prices are not completely in sync with international prices,” he said.
Currently, petrol is sold at Sri Lankan Rs 115 a litre (Indian Rs 50 a litre) and diesel is sold for Sri Lankan Rs 73 a litre (Rs 30 a litre). The revenue loss on petrol is Sri Lankan Rs 8 a litre and on diesel is Sri Lankan Re 1 a litre.
The company has no plans to enter the cooking fuel (domestic LPG) retailing business, he said. “For Lanka IOC the main revenue generator has been the retailing business. But now there is a conscious effort to change it by diversifying into bunker fuels and bitumen.”
On if the company has any plans to set up a refinery in Sri Lanka, he said, “It will not be economically viable.”
The company recently got Govt concessions for exports and is looking at exporting lubes to West Asia, Singapore, and Maldives.
Source:http://www.thehindubusinessline.com/2010/02/22/stories/2010022250900200.htm
Reliance’s KG D6 gas worth $1.5 bn: Oil Ministry
Reliance Industries-operated D6 gas field in the Krishna-Godavari (KG) basin has produced more than 10 bn cubic meters of natural gas worth over $1.5 bn in the first 10 months, a senior official in the oil ministry said. RIL commenced gas production from its KG-D6 on April 2, 2009.
Oil minister Murli Deora confirmed that the ministry has reviewed gas production from KG-D6. “It is a major achievement in country’s energy security. The (gas) production has helped industries particularly power and fertiliser sectors,” he told ET.
As per an oil ministry’s note, about 22 million standard cubic meter per day (MMSCMD) gas from KG-D6 is supplied to power units. “This has helped in generating an additional 5,000 MW power. It not only reduced the cost of producing power but also revived four stranded power plants in Andhra Pradesh,” the official said requesting anonymity.
“Now most of these power plants (getting KG-D6 gas) are running on a 90% plant load factor (PLF),” he added. PLF is measurement of average capacity utilisation of a power plant. Earlier, PLF of these power units was around 60%.
Due to the KG-D6 gas, government has been able to save subsidies on urea production to the tune of about Rs 4,000 crore, he said.
RIL is currently producing about 60 MMSCMD gas from KG-D6. “It is an achievement that the company has ramped up gas production in such a short time. It is only 20 MMSCMD less than achieving peak production level of 80 MMSCMS,” he said. At present production is taking place in 16 wells. But all 18 wells of KG-D6 are ready to commence production.
Reliance has already signed gas sale purchase agreements (GSPAs) with 48 customers for supplying over 61 MMSCMD. Consumers are specified by an empowered group of ministers (EGoM), and they are from fertilisers, power, city gas distribution, steel, LPG, refinery and petrochemical sectors.
In December 2009, RIL successfully tested the design capacity of its KG-D6 deepwater gas production facilities which gave a flow rate of 80 MMSCMD. RIL has been able to produce first gas from its KG-D6 block in a record time of six and a half year. Normally, deepwater production of such scale takes 9–10 years time. The KG-D6 gas field is one of the top five largest deepwater gas projects globally.
Source:http://economictimes.indiatimes.com/articleshow/5601365.cms
Oil minister Murli Deora confirmed that the ministry has reviewed gas production from KG-D6. “It is a major achievement in country’s energy security. The (gas) production has helped industries particularly power and fertiliser sectors,” he told ET.
As per an oil ministry’s note, about 22 million standard cubic meter per day (MMSCMD) gas from KG-D6 is supplied to power units. “This has helped in generating an additional 5,000 MW power. It not only reduced the cost of producing power but also revived four stranded power plants in Andhra Pradesh,” the official said requesting anonymity.
“Now most of these power plants (getting KG-D6 gas) are running on a 90% plant load factor (PLF),” he added. PLF is measurement of average capacity utilisation of a power plant. Earlier, PLF of these power units was around 60%.
Due to the KG-D6 gas, government has been able to save subsidies on urea production to the tune of about Rs 4,000 crore, he said.
RIL is currently producing about 60 MMSCMD gas from KG-D6. “It is an achievement that the company has ramped up gas production in such a short time. It is only 20 MMSCMD less than achieving peak production level of 80 MMSCMS,” he said. At present production is taking place in 16 wells. But all 18 wells of KG-D6 are ready to commence production.
Reliance has already signed gas sale purchase agreements (GSPAs) with 48 customers for supplying over 61 MMSCMD. Consumers are specified by an empowered group of ministers (EGoM), and they are from fertilisers, power, city gas distribution, steel, LPG, refinery and petrochemical sectors.
In December 2009, RIL successfully tested the design capacity of its KG-D6 deepwater gas production facilities which gave a flow rate of 80 MMSCMD. RIL has been able to produce first gas from its KG-D6 block in a record time of six and a half year. Normally, deepwater production of such scale takes 9–10 years time. The KG-D6 gas field is one of the top five largest deepwater gas projects globally.
Source:http://economictimes.indiatimes.com/articleshow/5601365.cms
Monday, February 8, 2010
Parikh charges up private oil retailers including Reliance and Shell
Private refiners Reliance, Essar and Shell plan to re-enter the petrol pump business in a big way if the government goes ahead with the Kirit Parikh panel’s recommendation to have free market pricing in petrol and diesel.
The private refiners had shut their pumps down when crude oil jumped to $147 a barrel and the state-owned refiners compensated for selling fuel below costs by the government.
“Private refiners are closely watching the government move. Free market pricing of petrol and diesel now is the most appropriate as it is around $70 to $80 a barrel,” industry sources said.
The first indication of their aggressive intent came from Essar group chairman Shashi Ruia who said Essar Oil planned to increase its petrol pumps to 2,000 in the next few months from 1,450.
Sources in Reliance Industries said they would re-enter the business if the government provided a level-playing field to the private players.
Terming it a landmark, Credit Analysis and Research (CARE) Limited has called for the immediate implementation of the Kirit Parikh Committee report that has recommended freeing of petrol and diesel prices and a steep hike in LPG and kerosene rates. This was the key to cutting subsidies, it said.
“The government needs to strike a balance between reducing the subsidy burden on the public sector companies, reducing the fiscal deficit and managing the current inflationary scenario, given that the economy is in the process of revival and is attempting to restore its buoyancy,” CARE said in a statement here.
“In the past, the entry of private players in the retail fuel market had resulted in an erosion of about 10 per cent in the market share of the public sector companies.”
Sources in the state-owned refiners said they would suffer immensely if the government just freed petrol and diesel prices, while leaving kerosene and LPG untouched.
“Private sector players would then have a field day because they can sell petrol and diesel at market-determined prices. Two-thirds of our losses are from cooking gas and kerosene,” the sources said.
The private firms had a market share of 14 per cent in 2006, but it had gradually reduced to a negligible sum following the spike in crude prices and absence of a compensating mechanism.
Reliance had to shut its retail operations down after global crude oil prices peaked. Essar and Shell India also closed some of their pumps, but when crude prices softened, they restarted some operations.
Arguing for free market pricing in its report, the Parikh committee said “a market-determined pricing system for petrol and diesel can be sustained in the long run by providing level playing field and promoting competition among all players, public and private, in the oil and gas sector.”
The report said a spike in crude price from $70 a barrel to $120 a barrel would result in an increase of around Rs 160 per month for two wheeler users and less than Rs 1,000 per month for car owners.
Source:http://www.telegraphindia.com/1100208/jsp/business/story_12079730.jsp
The private refiners had shut their pumps down when crude oil jumped to $147 a barrel and the state-owned refiners compensated for selling fuel below costs by the government.
“Private refiners are closely watching the government move. Free market pricing of petrol and diesel now is the most appropriate as it is around $70 to $80 a barrel,” industry sources said.
The first indication of their aggressive intent came from Essar group chairman Shashi Ruia who said Essar Oil planned to increase its petrol pumps to 2,000 in the next few months from 1,450.
Sources in Reliance Industries said they would re-enter the business if the government provided a level-playing field to the private players.
Terming it a landmark, Credit Analysis and Research (CARE) Limited has called for the immediate implementation of the Kirit Parikh Committee report that has recommended freeing of petrol and diesel prices and a steep hike in LPG and kerosene rates. This was the key to cutting subsidies, it said.
“The government needs to strike a balance between reducing the subsidy burden on the public sector companies, reducing the fiscal deficit and managing the current inflationary scenario, given that the economy is in the process of revival and is attempting to restore its buoyancy,” CARE said in a statement here.
“In the past, the entry of private players in the retail fuel market had resulted in an erosion of about 10 per cent in the market share of the public sector companies.”
Sources in the state-owned refiners said they would suffer immensely if the government just freed petrol and diesel prices, while leaving kerosene and LPG untouched.
“Private sector players would then have a field day because they can sell petrol and diesel at market-determined prices. Two-thirds of our losses are from cooking gas and kerosene,” the sources said.
The private firms had a market share of 14 per cent in 2006, but it had gradually reduced to a negligible sum following the spike in crude prices and absence of a compensating mechanism.
Reliance had to shut its retail operations down after global crude oil prices peaked. Essar and Shell India also closed some of their pumps, but when crude prices softened, they restarted some operations.
Arguing for free market pricing in its report, the Parikh committee said “a market-determined pricing system for petrol and diesel can be sustained in the long run by providing level playing field and promoting competition among all players, public and private, in the oil and gas sector.”
The report said a spike in crude price from $70 a barrel to $120 a barrel would result in an increase of around Rs 160 per month for two wheeler users and less than Rs 1,000 per month for car owners.
Source:http://www.telegraphindia.com/1100208/jsp/business/story_12079730.jsp
Wednesday, February 3, 2010
Reliance’s KG D-6 gas: Fast replacing the spot LNG demand in the country
KG D-6’s gas has affected the LNG’s spot market. Power and Fertilizer companies have diverted their attention towards KG D-6 for the gas supply. In last one month, in Hazira and Dahej terminals, not even a single cargo of LNG spot cargo has been arrived.
The spot market of Liquid Natural Gas (LNG) is shrinking. This could well be estimated from the fact that the business has faced beating in last one month at the Hazira LNG terminal of Shell and Dahej terminal of Petronet LNG. KG D-6’s gas has affected the LNG’s spot market to a great extent during the recent times. Reliance Industries’ (RIL) prolific KG D-6 is now producing 60 million standard cubic metre of natural gas every day (mmscmd) and has almost replaced the spot LNG demand in the country.
Most of the power and fertilizer companies have diverted their attention from the spot market of LNG to KG D-6. Supply of KG D-6 gas has largely replaced the demand of spot LNG. This is evident from the fact that before the allocation of KG D-6 gas, RIL itself was consuming almost 4 cargoes of LNG every month. According to the government sources, in last one month, in Hazira and Dahej terminals, not even a single cargo of LNG spot cargo has come.
Chief Executive Officer and Managing Director of Petronet Mr P Dasgupta said, “Today no one is making any LNG’s spot deal, the last LNG spot cargo was arrived in November 2009. The demand can only be there with advent of new energy and fertlizer companies. The present demand for the gas is being met by KG D-6 gas and the long term gas demand is being met by import of LNG by Petronet.”
According to the sources the future price of LNG is close to $8.2 per mmbtu, while KG D-6 gas is available at $4.20 per mmbtu. Till December last year even RIL was buying spot LNG from Hazira, every month for its Jamnagar Refinery. After it was allotted KG D-6 gas, no one is buying at spot LNG from Hazira. One of the officers of Shell India, also confirmed low spot LNG business, however, he refused to shares the figures.
Prior to KG D-6 gas supply, total gas supply in the country was staggering at around 110 mmscmd, including the long-term LNG sourced by PLL and Shell, as against the demand of about 175 mmscmd. Remaining gas demand was met through spot LNG. With the production of 60 mmscmd gas from KG D-6 field, the present demand of gas in the country is satisfied. However, the gas demand in the future is likely to rise again in the coming years as the domestic supply is unexpected to match the pace of growing energy demand of the nation.
Source:http://oilandgasindia.blogspot.com/2010/02/kg-d-6-gas-fast-replacing-spot-lng.html
The spot market of Liquid Natural Gas (LNG) is shrinking. This could well be estimated from the fact that the business has faced beating in last one month at the Hazira LNG terminal of Shell and Dahej terminal of Petronet LNG. KG D-6’s gas has affected the LNG’s spot market to a great extent during the recent times. Reliance Industries’ (RIL) prolific KG D-6 is now producing 60 million standard cubic metre of natural gas every day (mmscmd) and has almost replaced the spot LNG demand in the country.
Most of the power and fertilizer companies have diverted their attention from the spot market of LNG to KG D-6. Supply of KG D-6 gas has largely replaced the demand of spot LNG. This is evident from the fact that before the allocation of KG D-6 gas, RIL itself was consuming almost 4 cargoes of LNG every month. According to the government sources, in last one month, in Hazira and Dahej terminals, not even a single cargo of LNG spot cargo has come.
Chief Executive Officer and Managing Director of Petronet Mr P Dasgupta said, “Today no one is making any LNG’s spot deal, the last LNG spot cargo was arrived in November 2009. The demand can only be there with advent of new energy and fertlizer companies. The present demand for the gas is being met by KG D-6 gas and the long term gas demand is being met by import of LNG by Petronet.”
According to the sources the future price of LNG is close to $8.2 per mmbtu, while KG D-6 gas is available at $4.20 per mmbtu. Till December last year even RIL was buying spot LNG from Hazira, every month for its Jamnagar Refinery. After it was allotted KG D-6 gas, no one is buying at spot LNG from Hazira. One of the officers of Shell India, also confirmed low spot LNG business, however, he refused to shares the figures.
Prior to KG D-6 gas supply, total gas supply in the country was staggering at around 110 mmscmd, including the long-term LNG sourced by PLL and Shell, as against the demand of about 175 mmscmd. Remaining gas demand was met through spot LNG. With the production of 60 mmscmd gas from KG D-6 field, the present demand of gas in the country is satisfied. However, the gas demand in the future is likely to rise again in the coming years as the domestic supply is unexpected to match the pace of growing energy demand of the nation.
Source:http://oilandgasindia.blogspot.com/2010/02/kg-d-6-gas-fast-replacing-spot-lng.html
Mukesh Ambani led RIL’s LyondellBasell bid gets support from Dutch Govt.
The Dutch Government's Nodal Investment Agency says that they will support RIL’s for LyondellBasell if the deal goes through. The Netherlands, which is supporting Mukesh Ambani’s $12 billion plus bid for the Rotterdam based pet-chem giant, is the parent country of LyondellBasell.
Bass Pulles, Commissioner of the Dutch Foreign Investment Agency, which facilitates investments in an exclusive interview with ET Now’s Sumit Chaturvedi, in Hague, Netherlands said the government will support RIL's bid for LyondellBasell. “Since RIL is a foreign company, and so is LyondellBasell, we do offer assistance in the process which surrounds the take over, for instance speeding up immigration procedures or giving a warm shoulder from the ministry”, he said.
Reliance Industries Limited submitted an all-cash non-binding bid to buy a controlling stake in LyondellBasell in 21st of November, 2009. The bid came after LyondellBasell, the third largest petrochemical company in the world, filed for bankruptcy in January, 2009. The deal, if consummated, would facilitate growth of Reliance’s core business. As LyondellBasell has large petrochemical capacities coupled with a good tech portfolio as well as joint ventures in the Middle East, it would help Reliance Industries grow and reach the Western markets.
In December, 2009 Reliance Industries stated that it had no intentions of buying any of the debt from LyondellBasell. The month of January, 2010 witnessed Mukesh Ambani-led Reliance Industries stepping up its offer for the acquisition by offering $13.5 billion instead of the earlier $12 billion.
The Netherlands government support comes as a shot in the arm for Mr. Mukesh Ambani as he prepares to bid for the Rotterdam based LyondellBasell. When asked why the vote of confidence, Pulles said, “They might consider to reinvest again, they might send out positive message to other companies back home or they might inform us on any other strategic developments in their industry.”
The Netherlands is home to global brands like Philips, ING Bank and wants to attract more talent and capital from India. They already have big investments from over 120 odd companies in India such as Infosys and TCS. If Mukesh Ambani does tide over the resistance from some lenders of LyondellBasell, he can be rest assured about support from Dutch Authorities.
Bass Pulles, Commissioner of the Dutch Foreign Investment Agency, which facilitates investments in an exclusive interview with ET Now’s Sumit Chaturvedi, in Hague, Netherlands said the government will support RIL's bid for LyondellBasell. “Since RIL is a foreign company, and so is LyondellBasell, we do offer assistance in the process which surrounds the take over, for instance speeding up immigration procedures or giving a warm shoulder from the ministry”, he said.
Reliance Industries Limited submitted an all-cash non-binding bid to buy a controlling stake in LyondellBasell in 21st of November, 2009. The bid came after LyondellBasell, the third largest petrochemical company in the world, filed for bankruptcy in January, 2009. The deal, if consummated, would facilitate growth of Reliance’s core business. As LyondellBasell has large petrochemical capacities coupled with a good tech portfolio as well as joint ventures in the Middle East, it would help Reliance Industries grow and reach the Western markets.
In December, 2009 Reliance Industries stated that it had no intentions of buying any of the debt from LyondellBasell. The month of January, 2010 witnessed Mukesh Ambani-led Reliance Industries stepping up its offer for the acquisition by offering $13.5 billion instead of the earlier $12 billion.
The Netherlands government support comes as a shot in the arm for Mr. Mukesh Ambani as he prepares to bid for the Rotterdam based LyondellBasell. When asked why the vote of confidence, Pulles said, “They might consider to reinvest again, they might send out positive message to other companies back home or they might inform us on any other strategic developments in their industry.”
The Netherlands is home to global brands like Philips, ING Bank and wants to attract more talent and capital from India. They already have big investments from over 120 odd companies in India such as Infosys and TCS. If Mukesh Ambani does tide over the resistance from some lenders of LyondellBasell, he can be rest assured about support from Dutch Authorities.
Mukesh Ambani’s RIL gets supports from Netherlands Govt. on LB bid
The Dutch Government's Nodal Investment Agency says that they will support RIL’s for LyondellBasell if the deal goes through. The Netherlands, which is supporting Mukesh Ambani’s $12 billion plus bid for the Rotterdam based pet-chem giant, is the parent country of LyondellBasell.
Bass Pulles, Commissioner of the Dutch Foreign Investment Agency, which facilitates investments in an exclusive interview with ET Now’s Sumit Chaturvedi, in Hague, Netherlands said the government will support RIL's bid for LyondellBasell. “Since RIL is a foreign company, and so is LyondellBasell, we do offer assistance in the process which surrounds the take over, for instance speeding up immigration procedures or giving a warm shoulder from the ministry”, he said.
Reliance Industries Limited submitted an all-cash non-binding bid to buy a controlling stake in LyondellBasell in 21st of November, 2009. The bid came after LyondellBasell, the third largest petrochemical company in the world, filed for bankruptcy in January, 2009. The deal, if consummated, would facilitate growth of Reliance’s core business. As LyondellBasell has large petrochemical capacities coupled with a good tech portfolio as well as joint ventures in the Middle East, it would help Reliance Industries grow and reach the Western markets.
In December, 2009 Reliance Industries stated that it had no intentions of buying any of the debt from LyondellBasell. The month of January, 2010 witnessed Mukesh Ambani-led Reliance Industries stepping up its offer for the acquisition by offering $13.5 billion instead of the earlier $12 billion.
The Netherlands government support comes as a shot in the arm for Mr. Mukesh Ambani as he prepares to bid for the Rotterdam based LyondellBasell. When asked why the vote of confidence, Pulles said, “They might consider to reinvest again, they might send out positive message to other companies back home or they might inform us on any other strategic developments in their industry.”
The Netherlands is home to global brands like Philips, ING Bank and wants to attract more talent and capital from India. They already have big investments from over 120 odd companies in India such as Infosys and TCS. If Mukesh Ambani does tide over the resistance from some lenders of LyondellBasell, he can be rest assured about support from Dutch Authorities.
Bass Pulles, Commissioner of the Dutch Foreign Investment Agency, which facilitates investments in an exclusive interview with ET Now’s Sumit Chaturvedi, in Hague, Netherlands said the government will support RIL's bid for LyondellBasell. “Since RIL is a foreign company, and so is LyondellBasell, we do offer assistance in the process which surrounds the take over, for instance speeding up immigration procedures or giving a warm shoulder from the ministry”, he said.
Reliance Industries Limited submitted an all-cash non-binding bid to buy a controlling stake in LyondellBasell in 21st of November, 2009. The bid came after LyondellBasell, the third largest petrochemical company in the world, filed for bankruptcy in January, 2009. The deal, if consummated, would facilitate growth of Reliance’s core business. As LyondellBasell has large petrochemical capacities coupled with a good tech portfolio as well as joint ventures in the Middle East, it would help Reliance Industries grow and reach the Western markets.
In December, 2009 Reliance Industries stated that it had no intentions of buying any of the debt from LyondellBasell. The month of January, 2010 witnessed Mukesh Ambani-led Reliance Industries stepping up its offer for the acquisition by offering $13.5 billion instead of the earlier $12 billion.
The Netherlands government support comes as a shot in the arm for Mr. Mukesh Ambani as he prepares to bid for the Rotterdam based LyondellBasell. When asked why the vote of confidence, Pulles said, “They might consider to reinvest again, they might send out positive message to other companies back home or they might inform us on any other strategic developments in their industry.”
The Netherlands is home to global brands like Philips, ING Bank and wants to attract more talent and capital from India. They already have big investments from over 120 odd companies in India such as Infosys and TCS. If Mukesh Ambani does tide over the resistance from some lenders of LyondellBasell, he can be rest assured about support from Dutch Authorities.
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