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Mr Mukesh Ambani, Chairman, Reliance Petroleum Limited

India Infoline / 00:00 , May 11, 2006

 

Reliance Petroleum Ltd  has been formed to set-up a greenfield petroleum refinery and polypropylene plant in the SEZ at Jamnagar - Gujarat. RPL expects to leverage the advantage of managing large projects and start operations in 36 months when the average lead time period for such products internationally is around 48-54 months. It will be an 80% owned subsidiary of RIL (post issue). RPL has entered into agreements with Bechtel France S.A.S ("Bechtel") to license the technology for the major process units of the refinery and polypropylene plant i.e. providing detailed engineering, project management, site support and construction supervisory services as well as the offshore supply of equipment and bulk materials for the Project. The new 29-million-tonne refinery will supply exclusively to the export market, specifically the United States (Gasoline, diesel and jet fuel) and Europe (alkylates). Upon completion, the refinery will be the 6th largest refinery in the world based on current capacities. Chevron Corporation agreed to purchase 5% equity of Reliance Petroleum Limited by Chevron India Holdings Pte. Ltd, Singapore, a wholly owned subsidiary of Chevron Corporation for US$300mn. The agreement provides Chevron with the right to acquire an additional 24 % of the equity stake in RPL on conclusion of the collaboration agreements between Chevron and Reliance. If Chevron acquires additional equity, this will rank as one of the largest investments from any multinational company in a single project in India. This will also be one of the largest Foreign Direct Investment in India.

Mukesh Ambani, Chairman, Reliance Petroleum Limited is also the Chairman & Managing Director, Reliance Industries Limited, India and Chairman, Indian Petrochemicals Corporation Limited, India . A Bachelor of Chemical Engineering from the University of Bombay he pursued a MBA from Stanford University, USA. He joined Reliance in 1981 and initiated Reliance's backward integration from textiles into polyester fibres and further into petrochemicals. He directed and led the creation of the world's largest grassroots petroleum refinery at Jamnagar, India. He is now steering Reliance's initiatives in a world scale, offshore, deep water oil and gas exploration and production program, a pan-India petroleum retail network involving 5,800 outlets and a research-led life sciences initiative covering medical, plant and industrial biotechnology.

Anil Mascarenhas of India Infoline was present at the historic listing ceremony when RPL made its much awaited entry into the bourses. Following are the key points made by Mukesh Ambani on the occasion.

Vibrant capital market

It is my privilege to speak at the world?s most vibrant capital market. I extend a very warm welcome to 12.6 lakh shareholders who join the Reliance family today. Nearly three decades ago, Reliance Industries Ltd. came with its first public issue. And with that modest step, my father Dhirubhai Ambani ushered in the common man?s era in the Indian Capital Markets.

RPL?power of foresight

Today is another historic day. The IPO of Reliance Petroleum Ltd. marks the continuation of the revolution unleashed by him. It is our first public issue in nearly a decade and a half. Because, at Reliance, we wait for the right value creation opportunity.

We seize the opportunity as soon as we spot it. Reliance Petroleum Ltd. demonstrates the power of foresight. And Reliance?s ability to convert opportunities into value for our shareholders. Value that is sustainable, rewarding and enduring.

Historic response

The historic response to RPL IPO has made us feel humble. It reinforces our faith in the Indian capital markets. Capital markets and investors? relationship are sacred to us. I assure you: your faith and trust will be rewarded in the true Reliance manner. For me, RPL is a testimony of the faith that millions of investors continue to repose in us.

World?s largest refining facility

RPL inaugurates the creation of world?s largest refining facility at a single location anywhere in the world. RPL highlights India?s important role in the global management of energy. RPL is a statement of India?s growing role on the global scene. RPL will become the sixth largest Refinery in the world. Along with RPL, Jamnagar will become the Refinery Capital of the World. Almost 2 % of the entire crude in the world will be processed in Jamnagar. One in every 50 barrels will be processed in one location.

Energy is probably the most critical determinant in today?s world.

Opportunity for India, shareholders

Today, the developed world faces huge shortages of refining capacity that is capable of meeting the stringent standards of fuels. For India, this is an opportunity.

RPL showcases India?s ability to seize that opportunity for our shareholders.

The world is in need for a refinery that is capable of generating fuels that meet the future standards of fuels . A refinery synchronous with the global energy needs. RPL arrives at a time when the demand for clean and green fuels is growing. RPL has stepped in to meet this strategic need.

Poor crude to top product

It brings the capability to process the poorest quality crude into top quality products. In short, it is India?s answer to the global fuel situation. It is backed by the flawless execution capabilities of RIL. It is indeed set to be the India?s refinery for the world.

The international community has also given us a major thumbs-up.

Joy of excellence

Global oil majors like Chevron have expressed enormous confidence in Reliance.

It showcases Reliance?s emergence as a key player in the global energy space.

A large number of organizations and individuals have made this IPO an epoch-making event. For Reliance, every new benchmark is a call to exceed it. From such achievements of the Reliance team, we derive the joy of excellence.

Good for India, good for the world

My father Dhirubhai Ambani was my philosopher, mentor and guide. He believed in the power and potential of India. He saw Reliance as a vehicle of India?s rise as great power.

RPL is our tribute to his vision and his dreams. He gave us the mantra: What is good for India is good for Reliance. We are now poised to prove: what is good for India is good for the world.