Thursday, April 13, 2006

Chevron will by 5% stake in Reliance Petro

Chevron is set to buy a 5% stake in Reliance Petroleum at $300 million subject to government regulators.

Reliance is to setup a Rs.270 billion refinery at the special economic zone in Jamnagar, Gujarat.

The output generated by this refinery will make it the 6th largest refinery in the world. The refinery project is estimated to be completed by 2008.

Mukesh Ambani (chairman reliance industries) made the following statement, "The agreement between Chevron and Reliance will be the first step in establishing a strong partnership with one of the world's largest and most respected companies. I am happy that Chevron has taken the first significant step in participating in the growth story of India as a refinery destination in the world."

The Chevron-Reliance deal will rank as largest foreign direct investment in India.

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