Chinese oil giant China National Petroleum Corporation is believed to have joined the race with US energy majors Chevron and Exxon to pick up a stake in the Rs 27,000-crore (Rs 270 billion) Jamnagar refinery project of Reliance Petroleum Ltd, a subsidiary of Mukesh Ambani-controlled Reliance Industries Ltd.
"CNPC's overseas operations include exploration and development of oil fields, pipeline transportation, refining and terminal marketing. Reliance and CNPC may be looking for a tie-up in any of these areas and eventually there can be an equity participation too," industry sources said.
When contacted, a Reliance Industries spokesperson confirmed that the company was in talks with CNPC but refused to divulge details. "The company is in discussion with a few global majors for the refinery project, but nothing has been finalised," he added.
Reliance Petroleum is planning to enter into contracts with global exploration and production giants for supplying ultra-clean fuels to the major markets of the world - gasoline for the US and gas oil for Europe. The contracts may eventually extend to an equity tie-up with one of these giants.
Reliance Industries is also in the race to acquire more assets through the oil block auctions in India. Sources close to the development added that both CNPC and Reliance Industries were studying the feasibility of a joint venture for exploration and production abroad.
The company is planning to build a new 580,000-barrels-per-day refinery and a 900,000-tonnes-per-annum polypropylene plant next to Reliance's present 660,000 bpd refinery at Jamnagar. Reliance Petroleum will spend a total of Rs 27,000 crore on the new projects.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group