Reliance Industries rose 0.30% to Rs 2475 at 10:34 IST on BSE on reports the company may sell 10% equity in the Krishna-Godavari basin D-6 block to a new strategic foreign partner.
The scrip had touched a high of Rs 2511 and a low of Rs 2415 so far during the day. The stock had hit a 52-week high of Rs 3252.10 on
At the current price of Rs 2475, the scrip trades at a PE multiple of 11.13, based on Q3 December 2007 annualised EPS of Rs 222.26.
The net profit of Reliance Industries rose 162.2% to Rs 8,079 crore on 22.7% rise in sales to Rs 34,590 crore in Q3 December 2007 over Q3 December 2006.
At present, Reliance Industries (RIL) holds 90% in the Krishna-Godavari (K-G) D6 block and Canada-based Nikko Resources holds 10%. According to reports, RIL is considering this deal as part of a long-term strategic move as the company needs a partner for the level of deepwater drilling that is required at this particular block.
The potential partners could be among the global energy giants like ExxonMobil, Shell, BP, Total and Petrobras, as these are the companies with required expertise, the reports added.
Goldman Sachs is one of the consultants for the deal and RIL is sharing data with prospective partners to reach a valuation for the deal, reports said.
K-G D6 is the second largest deepwater find in the world, and is being brought to production in less than six years of its discovery at a cost of $2.8 per barrel of oil equivalent.
In October last year, RIL received the petroleum ministry’s approval to price the gas from K-G D6 at $4.2 per mBtu at delivery point (
RIL is engaged in oil refining, producing and distributing plastic and intermediates, polyester filament yarn, fibre intermediates, polymer intermediates, crackers, chemicals, textiles. It is also into exploration and production of oil and natural gas. The firm also runs retail outlets with a brand name ‘Reliance Fresh’.
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