How Reliance Scaled Up Its Performance Globally In Fy2011-12
RIL (Reliance Industries Limited) is the largest private sector in the country and is the second largest company in terms of revenue behind Indian Oil
. Ranked 134th on the Fortune Global 500 listin 2011, business magnates and others across the globe admire its innovation strategies and business acumen.
The global economy was left bleeding with incidents including the Eurozone debt crisis, theUSsswelling employment issue, civil unrest in Libya, Tsunami in Japan, etc. India on the other hand was concerned with tightening liquidity in order to curb the rising inflation. Amid all the glumness, RIL succeeded in growing its revenue by 31% and performed satisfactorily. It also racked up to increase the level of exports by 41.8% at Rs. 208,042 crore, as compared to Rs. 146,667 crore in FY 2010-11.
RIL is renowned worldwide for the technological innovation it regularly introduces to the world. It has constantly ushered its growth by infusing assistance from foreign consulting firms and their expertise knowledge in order to keep up to the international standards.
Reckoned as Indias largest exporter, its exports grew to Rs. 208,042 crore as compared to Rs. 146,667 in the precedingyear. Having exported to 119 countries, its export contributes to 61% of its revenue from operations.
Foreign companies have always exhibited a special interest in investing in RIL for the credibility it manifests. RILs international business deals and collaborations with varied global giants haveenabled it to achieve remarkable feats globally.
RIL- BP partnership:
The UK based British Petroleums(BP) expertise in deep water exploration and developmental activities joined hands with RILs proficiency in project management.The strategic alliance where BP picked up 30% stock in 21 Oil and Gas production companies led by RIL geared into action on February 21, 2011. The prime aim of the collaboration is to accommodate exploration, innovation and production of hydrocarbons in Indias deep-waterblocks, paving way for anenhanced energy security in India.
They also worked to incorporateIndia Gas Solutions Private Limited, a 50:50 joint venture company that caters to global outsourcing and marketing of Natural gas in India.
RIL-Pioneer JV
Reliance Eagleford Upstream LP, RILs subsidiary had inked collaborationwith Pioneer Natural Resources Company where it acquired 45% interest in the Eagle Ford Shale acreage.
The JV was poised to focuson drilling in liquid rich areas by leveraging drilling experience in the most affordable way. RIL accounted tothe production of 41.7 BCFe this year from this deal. Extensive research carried out in the Eagle Ford drillingenabled them to appreciate the significance of gas liftand rod pumping in order to increase their efficiency.
RIL-Chevron:
RIL Marcellus LLC, RILs subsidiary partnered with Atlas Energy, Inc (presently owned by Chevron Corporation) by picking up 40% interest in the Marcellus shale acreage positionof the latter. During this year, RIL contributed to an incremental production of 8.9BCFe with respect to five rigs that it deals with.
A few constraints witnessed due to the slow pipeline construction are intended to be resolved by mid- 2012. Besides, the number of rigs has been reduced to four, in order to facilitate value optimization.
Carrizo JV operations:
RIL entered into a joint venture with Carrizo Oil and Gas, Inc through its subsidiary Reliance Marcellus II, LLC by acquiring 60% stake in Carrizo's Shale Asset. RIL attributed to the production of 1.8BCFe catering to its operation intworigs, during the year.
It also instilled developmental plans in NEPA by setting up a new pipeline infrastructure that can increase its potential of transporting gas to market in an accommodating way and augment its netback.
It owns 10 blocks in the International conventional portfolio, i.e.3 in Yemen, 2 each in Kurdistan, Peru and Colombiaand 1 in Australia. The momentum of growth in these blocks is further set to intensify by accommodating testing in Sarta block in Kurdistan, 2D data possession of 42 LKM in Yemen and block 37. It also worked towards 3D data acquisition of 500sq. kmin the blocks of Colombia.
RIL leaves no stone unturned in strengthening its foothold internationally by importing knowledge and exporting results. With satisfactory growth that it observed in FY2011-12, it aims to accommodate new techniques and works to eliminate the constraints that have acted as obstacles previously, in order to spur its growth.
by: Chintan Shah
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