Mukesh Ambani’s Reliance Industries will expand its footprint on the global oil industry by enlarging its oil equity in Yemen.
KOLKATA: Mukesh Ambani’s Reliance Industries Ltd (RIL) will expand its footprint on the global oil industry by enlarging its oil equity in Yemen.
RIL will increase its equity holding to 50% in Yemen’s Ras Issa refinery that is being set up by a start-up-the Ras Issa Refinery Company in which Hoodoil, part of the Hayel Saeed Aman Group, (HDAG), the largest Yemeni group of private companies, holds 50% of the equity.
RIL had earlier decided to pick a 25% stake for $33.78 million in Ras Issa refinery that is being put up at an investment of around $450 million and the Indian private sector refining giant will up stake by leveraging its project execution capabilities of the refinery without any time and cost overruns.
Ras Issa refinery will initially have a capacity of around 50,000 barrels per day with options of doubling this with a product mix of petrol, diesel, aviation turbine fuel, kerosene, liquefied petroleum gas and benzene.
RIL officials were not available for comment. However, it was learnt from sources close to the company that products of the refinery based on Marib crude that is exported by Yemen will be bought by the government-controlled Yemen Petroleum Corp. The government of Yemen has assured the refinery crude supplies for 11 years and production is expected to commence sometime in the third quarter of current calendar.
RIL has already established a substantial presence in exploration and production (E&P) of crude in Yemen, some of which is imported as feedstock for its Jamnagar refinery. This is from onshore fields of Block 9 also known as Malik which Reliance has explored and developed also with Hoodoil and Calvalley Petroleum Inc, Canada.
The project involved drilling several vertical and horizontal wells, installation of oil and gas collection systems and truck-loading facilities. Reliance share of crude from Malik is in proportion of its equity holding which is 25% while Hoodoil and Calvalley hold 25% each.
The block is projected to yield 8,000 BOPD and expected to go up to 18,000 barrels per day when fully exploited.
Apart from Malik in Block 9, Reliance in partnership with Hoodoil has also made commercial discoveries in four fields of Hiswah, Al Roidhat, Auqban and Qarn Qaymah which are also part of the same block in Yemen.
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