`Tie-up to help in leveraging combined strengths of RIL, Chevron'

Our Bureau

Mumbai, July 22

Mr Jeet S. Bindra, President, Chevron Global Refining, has joined the board of Reliance Petroleum Ltd.

Chevron India Holdings, an indirect subsidiary of Chevron Corporation, US, had purchased 225 million shares representing 5 per cent of equity capital in the company from Reliance Industries (RIL).

The company believes that the strategic relationship will benefit it, as it will be able to leverage the combined strengths of RIL and Chevron in several areas. Looking ahead, the global refining industry fundamentals continue to stay robust, it said.

Good demand

"Despite high crude prices, demand for petroleum products demonstrated strong resilience and reinforced confidence on long-term prospects," it said. "New capacities are lagging behind due to project delays and cancellations. Limited additions to the global conversion capacity and widening light heavy differentials indicate that the complex margins would remain stronger even in the future," it said.

Refinery in SEZ

The company said that its export-oriented refinery, coming up in a Special Economic Zone at Jamnagar, is progressing as per schedule and is well on its way towards its scheduled completion by December 2008.

Reliance Petroleum Ltd informed the BSE on Friday that as on June 30, 2006, the company has utilised Rs 2,163.63 crore for its upcoming petrochemical project against a projected utilisation of funds of Rs 6,105.8 crore.

The variation is mainly due to non-payment of fees for technical services, as requisite clearances for remittance have not been received. There is no finance charge as no loans have been drawn. The progress of implementation is satisfactory and the project is expected to be commissioned by December 2008. Shares of Reliance Petroleum closed at Rs 60 on the BSE.

(This article was published in the Business Line print edition dated July 23, 2006)
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