Many foreign companies are expanding their projects in the vast Indian market. According to Reuters, British super-major oil and gas company, Royal Dutch Shell, is said to acquire $9 billion stake in Indian based oil company Nayara. The $9 billion stake will account to 50% of Nayara’s stake.
Both companies signed a Memorandum of Understanding in the month of June for this joint venture. This venture will help to meet the demands of petrochemical goods like plastic and paints.
Sources have further informed that 1.8 M tonne/year full steam ethylene cracker units will be built in Vadinagar which is located in western Gujrat.
Along with this deal Nayara is also looking forward to expanding its capacity from 400,000 barrels per day to 920,000 barrels per day at its Vadinagar refinery. This expansion will cost the company at least $17 billion.
Shell and Nayara are both partly owned by Russian company Rosneft. Roseneft specializes in extraction, production and refinement of natural gas and petrol. Nayara has now proposed its project to the environment ministry and a meeting on the matter will be held in August end.
