Chevron to sell stake in Reliance

Chevron Corp. said on February 28 that it would sell its 5% stake in Reliance Petroleum Ltd.’s (RPL) 580,000 barrel per day refinery at Jamnagar, on India’s West Coast, to Reliance Industries Ltd. (RIL). Chevron had until July 27, three months before the commissioning of the refinery, to either increase its shares in RPL or opt out of the company entirely. RIL’s stake in RPL will rise to 75.38% upon purchase of Chevron’s shares. In early March, RIL announced that it will absorb RPL through a share offer, effective April 1, 2009. RPL stockholders will receive one RIL share for every 16 RPL shares they own. Due to Chevron’s exit from RPL, RIL is now looking at direct fuel sales to the U.S., which it had initially planned to do in partnership with Chevron. (January 31 / February 28, 2009)