Reliance, Bechtel float engg venture

New firm to foray into outside contracts also.

Reliance Industries has formed a 50:50 joint venture with Bechtel, the global engineering, construction and project management company, for third party engineering contracts.

Apart from handling the engineering contract of Reliance Petroleum's $6-billion refinery at a special economic zone at Jamnagar in Gujarat, the joint venture will soon begin taking up projects of other companies as well.

The new company had started recruiting engineers who would be sent to Bechtel's office in London and at other overseas locations, Reliance sources said, adding that the foreign partner would be in charge of training and technology requirement of the new firm. The shareholding pattern of the venture could not be ascertained.

The privately held Bechtel has 40 offices around the world and 40,000 employees. It had revenue of $17.4 billion in 2004 and has been ranked as the top US contractor for the past seven years.

The engineering joint venture marks Reliance's entry into a business which is not related to its core activities of oil and gas.

Its portfolio of oil and gas reserves allows it to create value across the full chain, from oil to textiles. Reliance is well-positioned to be a major player in the global oil and gas space.

In a parallel development, Reliance Chairman and Managing Director Mukesh Ambani today said the company would look at inorganic growth in strategic businesses.

"In the more matured petrochemicals and refining businesses, we shall continuously aspire for global leadership. We shall also endeavour to be the lowest cost producers globally. Alongside, we will continue to invest in research, quality, safety and environment and thereby set new benchmarks in industry," he said.

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New grounds

The company will take up Reliance Petroleum's Jamnagar refinery in Gujarat

The foreign partner will be in charge of training and technology requirement of the new firm

The company has started recruiting Reliance will invest in research, quality, safety and environment