Will the Reliance magic work on Arabia?
Reliance Industries is probably the most successful company in India, when it comes to implementing projects - in other words properly doing what they set out to do. The latest mission, if successful, would get India much sought after oil equity in the biggest black gold territory in the world - Saudi Arabia.
Chairman of Reliance Industries Ltd Mukesh Ambani has made a strong pitch for developing oilfields in Saudi Arabia in a closed-door meeting with Ali Ibrahim Naimi, Saudi Arabia’s minister for petroleum and mineral resources.
Saudi Arabia is traditionally pretty picky about giving away oil equity, and India does not have a cent worth in that country, though we have been trying for a while. When oil prices were at their peak last year, Saudi did commit to increasing production by 2 million barrels a day. If they hold on to that commitment, even with the now fallen prices, then that is the scale of the opportunity.
