Reliance Industries Ltd (RIL) is eyeing a greenfield petrochemical project or midstream pipeline in Russia. Interest has been expressed in upstream businesses which include petrochemicals and pipelines, possibly under a joint venture in which RIL would be a majority partner, or at least, an equal partner. RIL Chairman and Managing Director Mukesh Ambani is expected to meet the Russian President Valdimir Putin to explore the possibilities of rolling out its expansion plan in the region during the leader's two-day visit to India that begins on Thursday.
If the partnersip is to materialize, the mega project will be globally competitive and will leverage the availability of raw materials locally, with an intent to capture the Europe and Central Asia.
However, Russia has so far shown reluctance in inviting investments in oil exploration and production (E&P).
In 2003-04, ONGC had formed a consortium with Reliance Industries and Indian Oil Corp (IOC) to buy out a majority stake in Sibneft, the fifth largest oil company in Russia, for about U$15 billion. ONGC had also involved Russian state-run Rosneft in the acquisition by offering it a 26% stake and a joint operator status but the acquisition could not be completed due to procedural delays on the part of the state-run firm. After Sibneft, Reliance has not looked at any oil property in Russia.
Russia's 2005-08 economic development plan focuses on reconstruction and upgrading of refineries so that the refineries can convert a higher level of crude and increase production of high quality light oil products, catalysts and raw material for the petrochemical industry.
25-Jan-07 
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