Chevron Corp is world's fourth-largest oil company and it has strong presence in many parts of the world. Now, it is in pursuit of strengthening its position in India by buying 5% of Reliance Petroleum Ltd. It is an investment of $300 million and there is a provision that Chevron can increase its stake up to 29%. Reliance Petroleum Ltd is a unit of Reliance Industries Ltd. It is planning to build a refinery in Gujarat state that will be the fifth largest in the world. The investment for this refinery is going to be $6.1 billion and IPO sold out in just 10 Minutes. Of course, Chevron's interest has convinced the other investors that it has a bright prospect.
This refinery is a smart investment by Reliance Industries Ltd. Considering the fact that demand for energy is growing very rapidly in Asia. This 580,000 barrels per day crude capacity plant is expected to start its operation from December, 2008. It will cater not only the Indian market but also the markets of many countries in Asia.
If you are looking for making investments in south Asia, I believe that you should seriously look at the shares of energy related companies because the demand for oil and gas is increasing in this part of the world.
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