Mumbai: Reliance Industries Monday said it will buy back US energy major Chevron’s 5% stake in Reliance Petroleum for Rs1,350 crore at Rs60 a share.

“The shares will be bought at Rs60 a share, as per the agreement,” RIL’s Chief financial officer Alok Agarwal told reporters here.

Chevron had acquired 22.50 crore shares in RPL as part of an Equity Investment Agreement with RIL in April 2006. As per the deal, RPL and Chevron were to enter into agreements on crude supply and product offtake.

On executing these agreements and other pacts, Chevron was to purchase an additional 24% stake in RPL from RIL.

The Equity Investment Agreement also provided that, in case these agreements were not executed, Chevron would sell and RIL shall buy the former’s 5% holding in RPL.

“We are going to exercise that right to buy the shares,” Agarwal said, adding that RIL would continue to have its ongoing business relations with Chevron.

An RIL statement had earlier said, “Chevron, RIL and RPL have jointly decided not to proceed with the conclusion of these agreements. Consequently, RIL shall purchase 22.50 crore shares of RPL from Chevron.”