Reliance Petroleum is an Indian

petroleum Petroleum, also known as crude oil, or simply oil, is a naturally occurring yellowish-black liquid mixture of mainly hydrocarbons, and is found in geological formations. The name ''petroleum'' covers both naturally occurring unprocessed crud ...

company that specializes in

oil An oil is any nonpolar chemical substance that is composed primarily of hydrocarbons and is hydrophobic (does not mix with water) & lipophilic (mixes with other oils). Oils are usually flammable and surface active. Most oils are unsaturated ...

and

energy In physics, energy (from Ancient Greek: ἐνέργεια, ''enérgeia'', “activity”) is the quantitative property that is transferred to a body or to a physical system, recognizable in the performance of work and in the form of hea ...

, owned by Mukesh Ambani of

Reliance Industries Limited Reliance Industries Limited is an Indian multinational conglomerate company, headquartered in Mumbai. It has diverse businesses including energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles. Reliance is o ...

(RIL), one of India's largest private sector companies. It is based in Ahmedabad,

Gujarat Gujarat (, ) is a state along the western coast of India. Its coastline of about is the longest in the country, most of which lies on the Kathiawar peninsula. Gujarat is the fifth-largest Indian state by area, covering some ; and the ninth ...

India India, officially the Republic of India (Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the so ...

and has interests in the downstream oil business. RPL was merged with

on 29 September 2009. Reliance Petroleum and RIL own / have long term chartered two oil rigs – DD KG-1 and DD KG-2 (DD standing for Dhirubhai Deepwater). They are both drilling ships registered in

Marshall Islands The Marshall Islands ( mh, Ṃajeḷ), officially the Republic of the Marshall Islands ( mh, Aolepān Aorōkin Ṃajeḷ),'' () is an independent island country and microstate near the Equator in the Pacific Ocean, slightly west of the Intern ...

and owned by Deepwater Pacific Inc., a subsidiary of

Transocean Transocean Ltd. is an American company. It is the world's largest offshore drilling contractor based on revenue and is based in Vernier, Switzerland. The company has offices in 20 countries, including Canada, the United States, Norway, Unite ...

Jamnagar Refinery

With an annual crude processing capacity of per stream day, RPL is the largest refinery in the world. It will have a complexity of 21.0, using the Nelson Complexity Index, ranking it one of the highest in the sector. The

polypropylene Polypropylene (PP), also known as polypropene, is a thermoplastic polymer used in a wide variety of applications. It is produced via chain-growth polymerization from the monomer propylene. Polypropylene belongs to the group of polyolefins a ...

plant will have a capacity to produce 0.9 million metric tonnes per annum. The refinery project is being implemented at a capital cost of Rs 270,000 million being funded through a mix of equity and debt. This represents a capital cost of less than US$10,000 per barrel per day and compares very favourably with the average capital cost of new refineries announced in recent years. The International Energy Agency (IEA) estimates the average capital cost of new refinery in the

OECD The Organisation for Economic Co-operation and Development (OECD; french: Organisation de coopération et de développement économiques, ''OCDE'') is an intergovernmental organisation with 38 member countries, founded in 1961 to stimulate e ...

nations to be in the region of US$15,000 to 20,000 per barrel per day. The low capital cost of RPL becomes even more attractive when adjusted for high complexity of the refinery.

Controversies

In 2012, reports surfaced in the media highlighting the fact that ONGC had chartered an oil rig owned by RIL in May 2009 (Dhirubhai Deepwater KG-1, also known as DDKG-1) without taking bids from any other companies. This was revealed in the report published by the

Comptroller and Auditor General of India The Comptroller and Auditor General of India is the supreme audit institution of India, established under Article 148 of the Constitution of India. They are empowered to audit all receipts and expenditure of the Government of India and the ...

(CAG), the overseer of expenditures of the Indian Government. RIL also owed ONGC Rs. 92,000 crores, which were already overdue by 2 years at that time. However, as of 2018, this outstanding amount was still not paid to ONGC by RIL.

References

External links

* {{Energy companies and organizations in India Oil and gas companies of India Companies based in Ahmedabad Energy companies established in 2008 Reliance Industries subsidiaries Reliance Industries Indian companies established in 2008 2008 establishments in Gujarat