International Business Times

Reliance to invest $ 10 billion in Egypt

By Surojit Chatterjee
 

13 August 2007

Cairo (IBTimes.com) - India's most valuable company in terms of market capitalization, the Reliance Industries Limited (RIL) has agreed to invest $10 billion in Egypt's oil refining, petrochemicals and plastic industries, according to the Egyptian Government officials.

The decision was reportedly taken by RIL following the meeting of its executives with Egyptian officials in the northern port city of Alexandria.

Egyptian Prime Minister Ahmed Nazif made the announcement, August 9, saying that he hopes the deal will include the construction of an oil refinery.

Magdy Rady, the Prime Minister's spokesman, told the official MENA news agency that the investments will include $1 billion to build the refinery and at least $7 billion invested in petrochemicals.

Reliance Petroleum Ltd, (RPL) a subsidiary of the Reliance group, has been importing Egyptian crude oil since 2001.

In recent years, the Reliance group has been trying to expand its global activities in oil and gas. It already has hydrocarbon assets in Oman, Yemen and East Timor, with oil assets in Yemen and gas in East Timor and Oman.

Reliance is believed to have been swayed by the Egyptian investment on account of the country's growing prominence as a supplier of gas as well as Egypt's strategic location close to Europe and the entire African continent.

The $83 billion petrochemical giant, RIL, is India's first and only private sector Fortune 500 Company.