NEW VISTAS

Mumbai, April 5: Reliance Industries Ltd (RIL) is planning to venture into rig manufacturing to tide over the problem of their availability in exploration & production (E&P), Atul Chandra, president, international business of RIL, said today.

Reliance has invested a considerable sum in E&P. However, it has been confronted with a shortage of rigs and rising charges. Rig charges have risen to over $450,000 per day from $110,000. Therefore, cost of services has also risen.

It has also been forced to extend the timeline for some of its blocks.

“We are certainly looking at entering the rig manufacturing business,” Chandra said, adding that RIL would look for a suitable partner for the venture.

The company is likely to enter rig manufacturing by the end of this year or the beginning of next year. It, however, is yet to begin talks with a prospective partner.

Petrol pumps

Reliance Industries will compensate its petrol pump dealers for the losses they suffer while running the pumps, the company’s petroleum president Partha Maitra said today.

RIL had set up around 1,350 petrol pumps in the country, of which 950 were owned by it and had been closed because of unremunerative prices.

ONGC Videsh

Petroleum minister Murli Deora said ONGC Videsh would invest $450 million in the next three years in oil and gas exploration and production in Venezuela.

ONGC Videsh will sign an agreement in this regard with Petroleos de Venezuela SA (PDVSA) next week. The joint venture will reportedly operate the San Cristobal oil block in Venezuela.

According to estimates, there are over 230 million barrels of recoverable reserves in this area.

ONGC Videsh will have a 40 per cent stake in the joint venture with PDVSA holding the rest.

Petroleum and natural gas secretary M.S. Srinivasan said around $300 billion would be spent in the next five to seven years on oil exploration and production.