Tag: Reliance

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Beyond

Reliance steps up LPG output to support domestic supply

Reliance Industries plans to increase the production of liquefied petroleum gas (LPG) and divert natural gas from its KG-D6 fields to priority sectors in order to support India’s fuel supply. The move comes as global energy markets remain uncertain due to tensions in West Asia.

The company said it is working to maximise LPG output at its large refinery complex in Jamnagar, Gujarat. By optimising operations at the refinery, the company aims to ensure that adequate LPG is available for domestic use, especially for cooking gas supplies across the country.

At the same time, natural gas produced from the KG-D6 basin in the Bay of Bengal will be redirected to sectors that are considered essential. These include household LPG supply, compressed natural gas (CNG) used in vehicles, and piped natural gas connections for homes and businesses.

The decision follows government guidelines that prioritise these sectors when domestic gas supplies are tight. Authorities have been taking steps to ensure that households and critical services continue receiving fuel without disruption.

Energy markets have become volatile in recent weeks because of the ongoing conflict in West Asia, which has affected global fuel supplies and shipping routes. As India imports a significant amount of energy, any disruption in international markets can influence domestic availability.

Reliance said the steps are part of its efforts to support India’s energy security during a period of uncertainty.

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1 Minute-Read

Reliance shares jump 3% on oil rally

Shares of Reliance Industries rose nearly 3% as global crude oil prices increased following tensions in West Asia. Higher oil prices are expected to improve refining margins for the company, which runs one of the world’s largest refining complexes at Jamnagar in Gujarat.

It is cited vy experts that stronger fuel prices, especially for diesel and other refined products, could support the company’s oil-to-chemicals business. Supply concerns linked to the Iran conflict have pushed crude prices higher, improving sentiment for refinery companies. As a result, investors showed increased interest in Reliance stock, expecting stronger earnings if oil prices remain elevated.

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Leaders

Mukesh  Ambani announces $110 billion for AI in India

Reliance Industries, led by Mukesh Ambani, announced a $110 billion (₹10 lakh crore) investment in artificial intelligence over the next seven years. The plan, revealed at the India AI Impact Summit 2026 in New Delhi, aims to make AI services as accessible and affordable in India as mobile data has become.

Ambani highlighted that the main barrier to AI adoption in India is not talent but the high cost of computing power. To tackle this, Reliance and its telecom arm Jio are building large AI-ready data centres in Jamnagar, Gujarat, starting with 120 megawatts in 2026 and gradually expanding to gigawatt scale. The initiative will also include a nationwide edge computing network, ensuring faster AI services for both urban and rural areas.

Reliance plans to use its green energy surplus, including 10 gigawatts of solar power from Kutch and Andhra Pradesh, to reduce the cost of running these centres. Ambani stressed that the goal is to make AI tools affordable for education, healthcare, agriculture, and small businesses across India.

The summit also saw commitments from other companies. The Adani Group plans to invest $100 billion in AI-powered, renewable energy data centres by 2035. Global tech giants such as Microsoft, Google, Amazon, and Nvidia announced investments and partnerships to expand cloud services and AI infrastructure in India.

Union IT Minister Ashwini Vaishnaw said the summit secured infrastructure investment pledges exceeding $250 billion, showing strong global confidence in India’s AI potential. Leaders emphasized that India is emerging as a trusted hub for AI innovation, combining digital infrastructure with scalable technology deployment.

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Beyond

Reliance gets US permit to import Venezuelan oil

Reliance Industries has received permission from the United States to import oil from Venezuela. This is a significant change because strict US sanctions had previously made it very hard for companies to trade with Venezuela’s oil industry.

The licence was issued by the US Treasury Department’s Office of Foreign Assets Control (OFAC). It gives Reliance the legal right to buy, bring into India, and sell Venezuelan crude oil without breaking US rules. This approval comes after the US government relaxed some of its sanctions on Venezuelan oil exports following political changes in that country.

Reliance had stopped buying Venezuelan oil in 2025 because of the sanctions. Now, with this new permit, it can resume these imports. Venezuelan crude is known for being heavy and usually cheaper than many other types of oil. Buying it at a lower price could help Reliance reduce its fuel costs and improve profits at its large refineries, especially the massive Jamnagar complex in western India.

The move is also part of a broader shift in US policy. Washington has eased restrictions on Venezuela’s energy sector, allowing not just Reliance but also major global oil companies to operate more freely there. Firms such as Chevron, BP, and Shell are expected to expand their involvement in Venezuela after the sanctions were loosened.

Besides helping Reliance, the licence may benefit Venezuela by boosting its oil exports and revenues. For the United States, allowing more companies to trade with Venezuela could strengthen economic ties with countries that purchase Venezuelan oil.

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Beyond

Reliance returns to Venezuelan oil, buys 2 mn barrels

Reliance Industries has bought 2 million barrels of crude oil from Venezuela, marking its first purchase from the country since mid‑2025. The deal is for delivery in April, and the crude was purchased through trading firm Vitol at a discount compared to global oil prices.

This move shows Reliance is taking advantage of cheaper Venezuelan oil, which is a heavy, sour grade that fits well with its large Jamnagar refinery in Gujarat. The refinery is equipped to process these kinds of crude, helping the company make better profits when refining it. Sources say the oil was bought at roughly $6–7 per barrel lower than Brent crude.

The purchase comes as the United States has eased sanctions on Venezuela, allowing some trading firms to handle its oil. This has made it easier for companies like Reliance to buy Venezuelan crude without running into legal or financial hurdles.

While the US has encouraged India to reduce purchases of Russian crude, India continues to make decisions based on price and energy needs, rather than politics. Officials say India will keep looking for reliable oil sources to meet its growing demand.

Analysts see this as a smart business move by Reliance. With global oil supplies changing due to geopolitical tensions and US‑Venezuela agreements, buying discounted Venezuelan crude can give Indian refiners an economic advantage.

The deal also highlights India’s strategy of diversifying its oil sources to secure steady supplies at competitive prices. By resuming trade with Venezuela, Reliance joins other Indian refiners in exploring alternative crude options while keeping costs under control.

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Corporate

Reliance, ONGC partner to share offshore energy assets

Reliance Industries Ltd (RIL) and state-run Oil and Natural Gas Corporation (ONGC) have entered into a strategic partnership to share offshore oil and gas resources, marking a major step towards improving efficiency and boosting India’s domestic energy production. The two companies signed a memorandum of understanding (MoU) during India Energy Week 2026.

The agreement focuses on sharing infrastructure, services and expertise across offshore exploration and production projects, particularly in deepwater and ultra-deepwater areas. Key regions covered under the pact include the Krishna-Godavari (KG) Basin on the east coast and the Andaman offshore blocks, where both RIL and ONGC operate adjoining or nearby fields.

As part of the collaboration, the companies will jointly use high-value assets such as drilling rigs, offshore platforms, processing facilities, pipelines, power systems, and marine infrastructure including platform supply vessels and multi-support vessels. The arrangement also covers specialised services such as well logging, project execution support and other technical operations required in offshore fields.

The primary objective of the partnership is to reduce operational costs, avoid duplication of infrastructure and improve asset utilisation in capital-intensive offshore projects. By sharing resources, both companies expect faster project execution, better logistical coordination and improved safety standards in challenging offshore environments.

ONGC said the MoU is in line with recent policy reforms, including the Oilfields (Regulation and Development) Amendment Act, 2025, which allows greater flexibility for operators to share facilities and infrastructure. The regulatory changes are aimed at encouraging collaboration, attracting investment and accelerating exploration and production activity in India’s oil and gas sector.

The partnership is also expected to strengthen emergency response mechanisms and operational resilience by enabling quicker access to vessels, equipment and technical support during critical situations.

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CLSA raises Reliance target to ₹1,800, flags Jio upside

Brokerage firm CLSA has increased its 12-month price target for Reliance Industries Limited (RIL) to ₹1,800 from ₹1,650, maintaining an Outperform rating on the stock.

The upgrade is largely driven by optimism around Jio Platforms, which CLSA expects to deliver strong subscriber growth, improved monetisation and rising free cash flows. The brokerage estimates Jio’s valuation could touch $190 billion by FY28, with a possible IPO acting as a major trigger.

While CLSA has moderated expectations for RIL’s retail and new energy businesses due to slower momentum, it believes the group’s long-term value remains intact, supported by telecom-led growth and steady earnings across core segments.

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Corporate

Reliance may return to Venezuelan oil market

Reliance Industries Ltd (RIL), India’s largest private company and operator of the world’s biggest oil refinery complex, has indicated it may consider buying crude oil from Venezuela, if international regulations allow. The company is waiting for clear guidance on whether non‑US buyers can legally purchase Venezuelan crude before taking any steps.

RIL had previously stopped buying Venezuelan oil in 2025 after the United States imposed a 25 per cent tariff on imports from the South American country. The last shipment of Venezuelan crude to Reliance arrived in May 2025. Now, with the possibility of the rules changing, the company is evaluating whether it can re-enter this market.

The Gujarat refineries operated by Reliance are well-suited to process heavy, lower-cost grades of crude like Venezuela’s Merey oil. This makes Venezuelan crude particularly attractive, as it could provide both cost savings and operational advantages for the company.

The announcement has drawn attention from investors, with RIL shares expected to remain in focus as markets watch the company’s next moves. Analysts suggest that a return to Venezuelan oil could help Reliance manage refinery costs, while also tapping into a potential supply of discounted crude in a global market that is often volatile.

Other Indian refiners, such as Indian Oil Corporation (IOC) and Hindustan Petroleum Corporation Ltd (HPCL), are also likely to evaluate Venezuelan crude should sales to non-US buyers be allowed. The broader energy sector sees this as a potential opportunity for Indian refiners to access competitively priced heavy crude, which could ease supply pressures and reduce import costs.

For Reliance, this move is not just about expanding crude sources—it is also a strategic play to maximize refinery efficiency and maintain competitive advantage. As international trade regulations evolve, the company is treading carefully, balancing opportunities with compliance, while the market closely monitors developments.

With global oil markets fluctuating and international policies in flux, RIL’s cautious approach reflects both ambition and prudence, highlighting the company’s focus on strategic sourcing in a complex global landscape.

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Corporate

Reliance shares slide over 4%

Reliance Industries Ltd (RIL) shares fell sharply, losing over 4 per cent in a single session, as investors reacted to concerns around the company’s crude oil sourcing strategy and rising uncertainty in the retail sector. The stock ended near ₹1,507, marking its steepest one-day decline in several months and wiping out close to ₹1 lakh crore from the company’s market capitalisation.

The immediate trigger for the sell-off was Reliance’s confirmation that it has not received Russian crude oil at its Jamnagar refinery for nearly three weeks and does not expect any deliveries in January. Russian oil had become an important source for Indian refiners over the past two years due to discounted prices. The halt has raised questions about future refining margins and supply stability, especially amid tighter Western sanctions and geopolitical pressures.

Market sentiment was further dented by concerns emerging from the retail sector. Weak updates from listed retail players have sparked fears of slowing consumer demand and margin pressure. Investors worry that similar challenges could impact Reliance Retail, which is a key growth engine for the conglomerate and a major driver of its valuation.

Analysts also pointed out that the sharp fall may partly reflect profit-booking. Reliance shares had risen strongly over the past year, outperforming the benchmark indices. With valuations at elevated levels, any negative trigger was likely to prompt investors to lock in gains.

The decline in Reliance shares weighed heavily on the broader market, dragging both the Sensex and Nifty lower due to the stock’s significant index weight. Market participants noted that sentiment turned cautious as uncertainty around global trade, crude prices and domestic consumption trends increased.

Looking ahead, analysts remain divided on the near-term outlook. While some expect continued volatility due to oil sourcing risks, retail sector pressure and global macro concerns, others believe Reliance’s long-term fundamentals remain intact. Potential triggers such as a future listing of Jio Platforms, tariff hikes in telecom services and stable refining margins could support the stock over time.

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Corporate

Reliance rejects $30bn government claim over KG-D6 gas

Reliance Industries Limited (RIL) has rejected recent media reports claiming that the Government of India is seeking $30 billion in compensation from it and partner BP over underproduction from the KG‑D6 deepwater gas field in the Krishna Godavari basin. RIL described these reports as “factually incorrect, inappropriate, and irresponsible” in a statement to stock exchanges.

The company clarified that no $30 billion claim exists against it or BP. The actual claim relates to about $247 million, a figure that has been fully disclosed in audited financial statements, consistent with disclosure requirements.

The dispute traces back over a decade and concerns costs the government allegedly disallowed for recovery during development and production of the KG‑D6 block’s D1 and D3 gas fields. Under the production sharing contract, companies can recover specific costs before profit sharing with the government. Media reports had suggested that lower gas output due to operational choices, including fewer wells, prompted the government to demand large compensation.

RIL and BP maintain they complied with all contractual and legal obligations, and geological factors limited field output. They stressed that the matter is sub judice, meaning it is under active judicial review, and any resolution will follow India’s legal process, including potential appeals up to the Supreme Court.

The company criticised reports relying on unnamed sources and misrepresenting facts. RIL reiterated its confidence in transparency and compliance with legal and contractual standards, asserting that the exaggerated claim misleads the public and investors.

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