IOC, Shell eye Reliance pumps stake

IOC, Shell eye Reliance pumps stake
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First Published: Fri, Mar 20 2009. 10 39 AM IST
Updated: Fri, Mar 20 2009. 10 39 AM IST
Mumbai: Indian Oil Corp and the Indian unit of Royal Dutch Shell are front runners for buying a 50% stake in Reliance Industries’ retail fuel business, the Economic Times said on Friday.
Citing an unnamed person familiar with the matter, the newspaper said state-run refiners Bharat Petroleum Corp and Hindustan Petroleum Corp were also invited by Reliance to bid.
“We are looking at the proposal and will take a call after the due diligence is done,” the paper quoted Sarthak Behuria, chairman of state-run Indian Oil Corp, as saying.
A spokesman for Shell told the paper the company does not comment on speculation.
Reliance, India’s largest private refiner, has been looking at ways to revive its retail fuel pumps that were shut when world oil prices rose last year making it difficult to compete with state refiners that sold fuel at government-set low prices.
“We want to look at options of a collaboration with existing market players,” PMS Prasad, the company’s chief executive for its oil and gas operations, told the paper.
Reliance has invested nearly $1.4 billion on the fuel retailing business and has a network of 1,432 petrol pumps across the country, the paper said.
A spokesman for Reliance reached by Reuters said he would not comment on the report.
Earlier this month, the Business Standard had reported that Reliance was in talks with Hindustan Petroleum to lease out its shuttered fuel pumps.
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First Published: Fri, Mar 20 2009. 10 39 AM IST