RIL hunts for oil exploration partner

Six years later, after Reliance Industries struck gas way back in 2002, making it the world’s largest gas find, Reliance has allowed TV cameras to shoot Ground Zero right where the gas is coming out from.
It makes sense when Reliance is all set to unlock all the gas riches that lie beneath the deep waters of Bay of Bengal.
With gas flowing out of the KG D6 project in six months, Reliance now wants to look ahead and is going on record to admit that it is keen on partnering with global oil major.
“Yes a foreign partner is always an option. It should not be seen as a weakness as we move into ultra deep waters, we will need more technology and support. We can be the best only if we work with the best,” said PMS Prasad, President & CEO, RIL.
To bring in a global partner in its upstream business, Reliance may have to hive off the exploration and production business even though the management insists that there are no immediate plans of doing so.

“If it unlocks value at a later stage then yes. But right now it is too speculative if it is right for the company we will do it,” added Prasad.
Even analysts say it makes perfect business sense for Reliance to hive off its upstream operations.

Leading foreign brokerage firm CLSA's in its most bullish, optimistic scenario pegs RIL's share price at 5305 per share, which is nearly 40 per cent of this value is from upstream. The upstream valuation pegged at Rs 2021 per share.

This is exactly in line with Reliance's target of ensuring that the upstream business contributes to 40 per cent of the company's bottomline.

After NDTV broke the news, RIL stock zoomed to hit an all time high finally closing 2.8 per cent up or Rs 88 to close at Rs 3,216.

Courtesy:ndtvprofit.com
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