Oman Oil plans ventures with Tatas, Reliance

Oman Oil Co. is in talks with Reliance Industries and the Tata Group for ventures to meet rising demand for fuels and chemicals.

The company will also raise its stake in a refinery being jointly built with state-run Bharat Petroleum Corp. with a final decision due in March, Oman Oil's Chief Executive Officer Ahmed Al Wahaibi said in an interview in New Delhi today.

Persian Gulf states, flush with cash from oil revenue, are seeking new investment opportunities and markets.

Tying up with companies such as Reliance will enable Oman to exploit its hydrocarbon reserves better as the Indian company will bring expertise from running the world's third-largest refinery and exploring for gas in waters off India's east coast.

"We're approaching India's private sector companies for ventures because they're growing,'' Wahaibi said. "We are very serious about our project with Bharat Petroleum and are in active consideration to increase our stake.''

Wahaibi didn't divulge details of the project planned with Reliance Industries. He said the venture with the Tata Group will look at using Oman's natural resources. Reliance Industries spokesman Tushar Pania declined to comment.

The Tata group with businesses in automobiles, software, chemicals, beverages, hospitality, energy, telecommunications and financial services has a market value of $72 billion.

Gulf News, citing Chairman Mukesh Ambani, yesterday said Reliance will invest $24 billion in the Middle East.

Mittal, Chevron
Oman Oil is joining billionaire Lakshmi Mittal and Chevron Corp. in tapping energy demand in India, the world's second- fastest growing major economy. The sultanate may offer its natural resources to companies such as Reliance Industries.

Mittal acquired a 49 per cent stake in a refinery project with Hindustan Petroleum Corp., the country's second-biggest state-run refiner. Chevron owns a 5 per cent stake in a plant being built by Reliance Petroleum, a unit of Reliance Industries.

Bharat Oman Refineries, the venture with Oman Oil Co. is building a plant in Bina in Madhya Pradesh state capable of processing 6 million metric tons of fuels, or 120,000 barrels a day, at a cost of Rs 10,300 crore ($2.6 billion).