STOCK BUZZ

The merger of Reliance Industries with Reliance Petroleum will enhance value for shareholders of both the companies and is a major step towards creating one of the largest petrochemical firms of the world, RIL chairman and managing director Mukesh Ambani said. Commenting on the merger, Ambani said : "This merger follows Reliance Industries' philosophy of creating enduring value for all our shareholders. It is a significant step inour goal to be among the largest global corporations". The board of directors of Reliance Industries and its refinery subsidiary RPL today approved the merger of the two firms, creating one of the world's largest petrochemicalentity and offered the shareholders of RPL one RIL share for every 16 shares held by them. Pursuant to the said merger, RIL's holding in RPL would be cancelled and RIL would issue 6.92 crore new shares thereby increasing its equity capital to Rs 1,643 crore.Besides, this would result in a 4.4 per cent increase in equ...

Reliance Petroleum Limited (RPL) today announced the commissioning of its refinery in a Special Economic Zone at Jamnagar, Gujarat in India.   With a crude oil processing capacity of 580,000 barrels of oil per day, RPL ranks as the 6th largest refinery in the world and is also amongst the world's most complex refineries.   RPL commenced its crude processing on 25th December 2008. The secondary processing units are now under synchronization and commissioning. The entire refinery complex is expected to attain full capacity shortly.   The commissioning of the RPL refinery catapults Reliance into the league of the largest refiners globally, both in terms of complex refining capacity and earnings potential. With the completion of the RPL refinery, Jamnagar has emerged as the ' Refining Hub of the World ' with the largest refining complex with an aggregate refining capacity of 1.24 million barrels of oil per day in any single location in the world.   The s...

do you know how long it takes to build a refinery. The Saudis are flush with cash and don’t know what to do with it. Hence they are building stuff that nobody needs. By the time they complete building their refineries, we would have moved beyond the peak oil debate with dwindling Saudi supplies. I would bet on the Bania survival skills over any machinations coming from the middle east.

The Saudis have just declared that they will be building four new, modern large refineries in the next three years. Kuwait has already started building a mega fourth refinery. The Saudis have declared that in future, they will export only petroleum and allied products NOT crude oil, which is logical. So where will he get sufficient crude when these new refineries come up? Venezuela? The freight costs would be too high. Will he build one in Venezuela or Peru? The region is famous for inviting foreign companies and then “nationalizing”, once they are on stream. Hence long term having a refinery with no captive crude supply is simply un viable, similar to having a mega steel plant with no mines for ore.

Though I have never invested in the shares of Reliance Industries, my recently gleaned understanding of the world petroleum scenario has made me respect the company’s vision in its refining projects. As I mentioned once earlier, RIL’s existing refinery, and the one nearing construction, reportedly have unparalleled flexibility to process heavy, high-sulphur (so-called sour) crude, especially that emanating from Iran. This crude sells at a huge discount to other crudes; once it is refined into diesel, though, RIL is able to sell the resultant distillates, especially diesel, into a world market which is thirsty for such products. Most mature consumers, the US especially, have made no investment in refining capacity over the last 2 decades, and strategic thinkers in the petroleum industry go so far as to say that RIL’s investments are changing the pattern of world flows in petroleum and petroleum products. For this reason, I have recently turned from a bear on RIL to a mildly positive neu...

Indian Oil Corporation (IOC) calculates inter alia the landed import duty paid price of petrol and diesel every fortnight. This calculation is based on a formula that is linked to international prices. IOC’s landed price of petrol in Mumbai for the second fortnight of May was, for instance, Rs 38.1 per litre and for diesel Rs 48.8 per litre. The marketing companies had to, in other words, pay this amount to the refiners to buy the products. Next, the Central government imposes an excise and educational cess on the purchase cost. In May, this was Rs 14.4 per litre and Rs 0.4 per litre for petrol and Rs 4.6 per litre and Rs 0.1 per litre for diesel respectively. The total cash required by the marketing companies to purchase petrol and diesel in May was, therefore, Rs 52.9 per litre for petrol and Rs 53.6 per litre for diesel. The companies then sell these products at the ministry of petroleum mandated price of Rs 49.7 per litre for petrol and Rs 35.6 per litre for diesel (Mumbai prices)...

Buy for may 28 th ( Reliance Petroleum) Reliance Petroleum is good buy and hold for delivery for next 6 to 8 months. This is real gold which will shine brightly in next 6 to 8 months.

Market Condition: I know one can get tempted to buy at such attractive valuation with Risk of 15 to 30%.All those compulsive traders with cash can buy near Nifty 4400 levels and sell near nifty 5000 levels. Buy for April 7th 2008 Reliance Petroleum 170.15, 172, 177 Stop Loss 166

Keep eye on Reliance Power listing today. Buy for Feb 11th 2008 Buy ONGC >1001.1,1015,01034 Stop Loss 994 Buy ICICI Bank >1076.1,1094, 1100,1123,1176 Stop Loss 1068 And here is the rest of it.

Reliance Petroleum (RPL) announced today the successful completion of the 2nd year of implementation of its complex refinery, coming up in a special economic zone at Jamnagar. The company achieved 82% overall progress in just 24 months since commencement of the project. Based on the progress so far, the company is on course to complete the project ahead of its initial schedule of December 2008 During the quarter, project implementation gained further momentum and led to achievement of several significant milestones, including the following: - Engineering activities are nearing completion. - Overall procurement progress exceeded 97%. - More than 75% of equipments and tagged items already received at site. - Deliveries of over dimensional cargos (ODC) and super ODCs are nearing completion. - Over 40% of equipments have been erected; Project skyline changed dramatically. - Overall construction progress crossed the 60% mark for the complex. - Structural and pipe fabrication activities prog...

The government may allow 100 per cent foreign direct investment in oil and petroleum marketing companies. This follows a review of the FDI norms by the nodal body for policy making in foreign investment — the Department of Industrial Promotion and Policy (DIPP). At present, if a foreign company sets up an oil marketing company, it is required to divest 26 per cent in favour of an Indian partner within a period of five years. This holds good for oil refining companies as well. Sources close to the development said that there were many applications from foreign companies to market oil and petroleum. The government, according to them, was thinking of allowing 100 per cent FDI on a case to case basis. However, both the Foreign Investment Promotion Board (FIPB) and the DIPP have taken a joint policy decision to allow 100 per cent FDI in oil marketing companies. “The move is welcome from both the industry and consumer perspectives. In the current situation, oil marketing may not be attractiv...

Reilance Petroleum will cross Rs 130 and will go up to range of Rs135 - Rs 138

By Economictimes Reliance Industries said on Tuesday it had bought a majority stake and management control of east African oil retailer Gulf Africa Petroleum Corp (GAPCO) for an undisclosed sum. The company said in a statement that GAPCO was a strategic acquisition which would give it access to the rapidly growing economies of east Africa , where demand for petroleum products is rising. "These markets are easily accessible from India and in that sense provide a strategic fit for exports from India ," it said. GAPCO owned and operated large storage terminalling facilities and a retail distribution network in countries including Tanzania , Uganda and Kenya , Reliance said. It said GAPCO had more than 250 outlets catering to retail and industrial segments.