The $9 billion deal that Mukesh Ambani, chairman of Reliance Industries Limited (RIL) signed with BP on Monday, may just be a mark of the fact that pursuit of excellence is a crucial catalyst for this redoubtable enterprise.
On Monday, BP- the owner of world’s leading deep-sea oil and gas exploration squad – decided to pay up Reliance $7.2 billion for a 30% stake in 23 exploration blocks, plus $1.8 billion for future explorations, leaving RIL with a 60% stake in blocks; where its partner ‘Niko Resources’ of Canada has 10% holding; and 70% stake in the rest of a geography that so far has found 15 trillion cubic feet of gas reserves. Both parties are set to ink the deal by next month.
What makes this deal particularly noteworthy is the fact that Mukesh Ambani has decided to augment the present image of the company from a self-sustaining enterprise to one that allows for more collaborative ventures with major global players for maximum advantage. Reliance Industries is an enterprise which is capable for undertaking anything and everything with an eagle forte and with emancipated skill, without any outside assistance.
But by having the technology that BP is in possession of allows Reliance to squeeze the most out of its exploration assets.
Not only does this deal help Reliance in attaining technical assistance but allows access to global assets more readily by reducing its dependence on domestic resources. As for its confederate in the deal, exposure to emerging markets will be a relatively undemanding task. PMS Prasad, who has single handedly spearheaded Reliance’s E&P business, quoted that, “Oil is found in the minds of the people.”
And true to this statement will lay an overwhelming verity that BP will ring in newer ideas and techniques that will help Reliance reap the most from its blocks. With excellence in optimization, this process will invariably ‘oil’ the way for enhanced output.
Reliance Industries Limited is an enterprise that strives for excellence. Mukesh Ambani, following this decision, said that RIL needed a “cushion of $18 billion” by fiscal year 2013 for developing D6 and, in the course of this deal there is a definite likelihood that Reliance will stage a far more efficient performance. More than an investment opportunity, this deal is a bell ringer that sounds courteously of Reliance one-upping its own bar.