Reliance bids for BP's Belgium refinery

Reliance Industries is believed to have put in $2 billion bid for the refinery and petrochemicals facility of BP Plc in Belgium.

Sources familiar with the development said Reliance, which had been in talks with BP for the Belgium unit for over a year, had recently put in a formal proposal. The deal might be announced anytime, they added.

There was, however, no official confirmation on this from Reliance. A Reliance spokesperson declined to comment. Sources said Reliance Chairman Mukesh Ambani would discuss the proposed acquisition with Belgium Prime Minister Guy Verhofstadt, who is coming to India on a six-day tour.

This deal will mark the first major acquisition of Reliance Industries, which generates surplus cash of over Rs 17,000 crore a year, in the exploration sector. Reliance's networth stands at Rs 54,000 crore.

The Reliance board will meet tomorrow to consider raising $2 billion (nearly Rs 9,000 crore) to fund investments in oil and gas exploration and production business. The instrument for the fund raising could be foreign currency convertible bonds.

Ambani, in a recent media interview, had said the company was eyeing oil firms in the North Sea and also aimed at acquiring oil drilling and engineering firm in Africa, South America, the Middle East and India. He said British companies working in the North Sea would become soft target with dwindling reserves in the region.