Chevron to buy stake in Reliance Industries’ refinery

Chevron to buy stake in Reliance Industries’ refinery

Chevron Corp. has said that they are going to acquire a stake in a new refinery being built in India by Reliance Industries.

The deal is worth around $300 million and they would be buying a 5% stake in this refinery. Chevron aims to build its position in the fast-growing Indian market with this initiative.

This new refinery is being established by the India’s Reliance Industries Ltd. and it would have a capacity of refining 580,000 barrels of crude oil per day. Reliance is currently preparing to also offer 10 percent of their unit Reliance Petroleum Limited for sale to the public from today.

As per market analysts, Chevron might soon plan to enter the Indian market in a big way. This might include plans to establish their own petrol (gasoline) stations.

The planned refinery from Reliance is expected to begin operations in December 2008. It would be located in the western Indian town of Jamnagar.