Mukesh Ambani looking for buyers for Gas Pipeline Arm

Posted By:
Subscribe to GoodReturns

Mukesh Ambani looking for buyers for Gas Pipeline Arm
After sharing 30% stake with BP, India's top business tycoon, Mukesh Ambani is looking to sell Reliance Gas Transportation Infrastructure Ltd. (RGTIL), a business that builds pipelines to carry natural gas across the country, according to Wall Street Journal.

According to the media reports, Ambani has contacted bankers to help him to find buyers for his business.

Its been speculated that the privately-owned gas pipeline business could be worth around $1 billion.

RIL group has set up RGTIL – the pipeline business for transportation of RIL gas from its D6 field.

In February 2011, RIL agreed to sell 30% stake in 23 oil and gas blocks to British Petroleum (BP) for $7.2 billion. The stake includes the D6 block in the Krishna-Godavari basin which is located off the country's west coast near the city of Kakinada. The pipeline is spread from Kakinada to Bharuch, passing through Andhra Pradesh, Karnataka, Maharashtra and Gujarat.

In May, India's upstream regulator said Reliance was producing 48 million standard cubic metres per day of gas from the key D6 block of Krishna-Godavari basin.

However, the process is at an early stage and a sale may not take place. The spokesman for Reliance Industries declined to comment.

OneIndia Money

Read more about: ril, ambani, oil and gas
Story first published: Wednesday, July 6, 2011, 10:45 [IST]
Please Wait while comments are loading...
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'