Chevron of USA has proposed to pick up
30-40 per cent equity stake in Reliance Industries' gas block in the KG Basin.
The KG-DWN-98/3 block (also referred to as D6) struck 14 trillion cubic feet of
gas in November 2002. Production from this block is likely to begin in mid-2008,
with a $2.5 billion investment currently underway. At present, Reliance holds 90
per cent interest in the block, while 10 per cent is held by Niko Resources of
Canada.
Co-promoter: In a related development, SEBI has
granted permission to Chevron in becoming a co-promoter to Reliance Petroleum's
27 million tpa greenfield export-oriented refinery project in Jamnagar. In
mid-April 2006, Chevron picked up 5 per cent equity stake for $300 million. The
US oil major is likely to subscribe up to 40 per cent equity stake in the
refinery project. Chevron's 5 per cent stake comprised 22.5 lakh equity shares,
each priced at Rs.60, and locked-in for three years.
Chevron's investment will be routed
through Chevron India Holdings Pte Ltd, a Singapore-based wholly owned
subsidiary of Chevron Corporation.
Also See:
Chevron picks up
stake in RPL: First FDI in refining sector (13-Apr-06)