RIL eyes refinery in Nigeria, Gulf

MUMBAI: The Mukesh Ambani-controlled Reliance Industries is in talks to acquire a refinery in Nigeria and a petrochemical complex in the hydrocarbon-rich Gulf region, in an attempt to build capacities close to key raw material centres and markets. People familiar with the transactions said the two separate deals, if and when concluded, could be worth close to $10 billion. Reliance has already identified a refinery it wants to acquire in Nigeria and is currently conducting due diligence, they added. The name could not be ascertained but is believed to be the nine-million-tonne Port Harcourt refinery in that country. Other Indian groups such as Essar and HPCL-LN Mittal duo are also believed to be interested in the refinery. An email sent to the company on the deals did not elicit any response. If the deal goes through, this will be RIL’s second overseas refinery, the first being a greenfield project set up in Yemen, where it has already picked up stake in two oil blocks. Nigeria is in the process of privatising at least four of its refineries. It has invited expressions of interest for a strategic partner in the Port Harcourt refinery and others. A London-based boutique investment banking firm has bagged the mandate to advise RIL on the bid. “It is logical for a company like Reliance to set up or acquire a refinery near the source of crude oil. Reliance already has discovered oil blocks in Yemen and exploratory blocks in Oman, Colombia and Timur. With a refinery in the Middle East or Africa, RIL can directly cater to the European and US markets, besides tapping the local market,” says an analyst with an international firm.