Global energy major Chevron is to acquire 5% stake in Reliance Petroleum for US$300 million as per an agreement that provides Chevron with the right to acquire an additional 24% of the equity stake. This purchase is subject to approvals from the regulatory authorities and will be one of the largest foreign direct investments in India.
Reliance Petroleum also proposes to enter the capital market with a public issue of 1.8 billion equity shares of Rs.10 each for cash at a premium to be decided through the 100% book-building process that will open Thursday. Reliance Petroleum's public offering is being made to part finance the Rs.270 billion grass-roots refinery to be set up in a special economic zone at Jamnagar in Gujarat.
Reliance Industries has also signed two memorandums of understanding (MoUs) with Chevron. The first relates to optimisation of crude supply and product off-take and marketing of the Reliance Petroleum refinery. The second sets out the intent of both companies to collaborate in other areas in the energy value chain
13-Apr-06 
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