With a focus on the larger fuel markets abroad, Reliance Industries (RIL) is strengthening its existing international trading desks through hiring and by incorporating more desks in the US and Europe. Further, the petroleum major is looking to buy fuel storage facilities in developed countries, according to company sources.
For its Singapore trading desk, the company aims to hire a few top level executives in a few weeks. The desks in London and Houston will also recruit more executives for finding opportunities in those markets. The company has another trading desk in Dubai.
“In addition to the existing desks, the company intends to set up more desks in the US and Europe to cut traders’ margins, which could be 3-4 per cent of the total cost. Moreover, RIL intends to begin retail operations in those markets,” the sources said.
An RIL spokesperson declined to comment on the expansion of trading desks.
A year ago, RIL had incorporated two wholly-owned subsidiaries in London and Singapore to tap opportunities in global markets. London-based Reliance Global Energy Services (RGES) is headed by Peter Ward, who was earlier the president of Shell Trading’s Gas and Power division.
However, RGES Singapore’s chief Michael Ng and his team left the company in February. Since then, the Singapore operation was controlled by other international desks. Now, RIL has decided to hire a few executives immediately to revamp the operation in Singapore, a company official said.
RIL had recently started gasoline (petrol) trading operations in Houston for trading in the US Gulf Coast and New York Harbor markets. It also commissioned storage facility at the Ashkelon terminal in Israel to tap the Mediterranean and European markets.
Further, it leased storages in Singapore and the Caribbean. The company owns a storage facility in Africa through its subsidiary, Gapco. At present, RIL is looking for a storage space in the southern European island nation of Malta.
RIL is selling 30-40 per cent of the produce from its 660,000-barrel-a-day refinery at Jamnagar in the international markets.
