Formal proposal by Reliance for BP's Belgium refinery?

09-Nov-06

Sources indicate that Reliance Industries has submitted a formal proposal for a US$2 billion bid for the refinery and petrochemicals facility of BP Plc in Belgium. Reports indicate that Reliance has been in talks with BP for the Belgium unit for over a year, before submitting a formal proposal. The instrument for the fund raising could be foreign currency convertible bonds. Reliance Industries generates surplus cash of over Rs 17,000 crore pa in the exploration sector and has a net worth of Rs 54,000 crore. In a recent interview, the Chairman of the group said the company was eyeing oil firms in the North Sea and also aimed at acquiring oil drilling and engineering firm in Africa, South America, the Middle East and India. He said British companies working in the North Sea would become soft target with dwindling reserves in the region.