Reliance Petroleum Limited (RPL)
Reliance Industries Limited (RIL), one of the largest private sector companies in India headquartered in Ahmedabad, founded Reliance Petroleum Limited (RPL) in the year 2008. RPL is a subsidiary company to RIL presently, which has its interest in the downstream oil business. RPL also gets support from Chevron India Holdings, Singapore since the former has a strategic alliance with the latter. It is good to know that the latter is a wholly owned subsidiary of Chevron Corporation USA (Chevron). The refining activities of this company are carried out at the refinery complex in Jamnagar. It has a capacity to refine 540,000 barrels per day that sums up to 27 million tons in a year.
It can also process extensive varieties of crudes ranging from light to very heavy i.e from 18 to 45 degree API. The crudes range from sweet to very sour as well with sulphur content ranging from 0 to 4.5%. Reliance petroleum Limited started with processing of crude on 25th December, 2008. The second unit is now getting synchronized and commissioned. Within a very short time, the whole of this refinery complex would become productive to its full capacity. The capacity will increase to 580,000 barrels per day making it the sixth largest refinery on Earth.
The complexity will be 14.0 as per the Nelson Complexity Index making it the highest in the region. The Reliance Petroleum Project has a Polypropylene Plant and Greenfield Petroleum Refinery in the Special Economic Zone in Jamnagar. The polypropylene plant would have the capacity to generate 0.9 million metric tonnes in a year. The capital cost incurred by the company to implement the project is Rs. 270,000 million and it being funded by both debt and equity. This means that the capital cost is less than $ 10,000 USD per barrel in a day. It is lower than the capital cost of all other refineries around the world that are being set up now. International Energy Agency (IEA) estimated that the average cost of other new refineries based in the OECD nations is between $ 15,000 USD and 20,000 USD per barrel per day.
The capital cost of Reliance Petroleum Limited becomes all the more fascinating when it is available with the added advantage of high complexity of the refinery. Certain reasons are there that enables the company to maintain such low capital cost. These are proper engineering and designing techniques, opting for right strategies for procurement and implementing the blue print of the project properly on the refinery. All these are providing an edge to the company over its competitors.
Thus, one can expect to get superior product at competitive price from Reliance Petroleum Limited. It is going to take 3 years in total for the project to get completed. The project is also named as “A Modern Temple of Resurgent India.” Reliance Petroleum Limited has a wide network of Reliance Petroleum Dealership in India through which it retails petrol. The petrol is available at pre-determined price at all important highways and within the city as well.
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