Increasing reliance of Reliance Petroleum on Latin American crude oil

Reliance imported about 300,000 barrels a day of crude on average from Latin America during the first ten months of 2010. This accounted for about a quarter of the company’s total imports during the period, compared with 13 percent in the same period of 2009.

Reliance refinery complex in Jamnagar in Gujrat, India has refining capacity of 1.24 million barrels a day, the largest at a single location.

About two-thirds of Reliance’s imports from Latin America during the first 10 months of 2010 came from Venezuela which accounted for 59 percent, Mexico 21 percent and Brazil 14 percent.

Reliance is expected to increase crude imports from Latin America as it seeks better refining margins by processing heavier and cheaper grades of oil.

In 2009 Reliance bought 155,000 bpd from Latin America. This went up to 380,000 barrels a day in the first four months of 2010.

In dollar terms Reliance imports of crude oil from Latin America in 2010 ( Jan-Oct) are about 7.5 billion dollars and in 2009 imports were 4.2 billion dollars.

The crude oil imports of Reliance accounts for over forty percent of India´s imports from Latin America. Crude oil is the leading item of India´s imports from latin America.

Reliance´s export of diesel oil to Brazil in the period Jan-Oct 2010 was 1.4 billion dollars. This topped India´s exports to Brazil and constituted 41 percent of India´s exports to Brazil. In the same period Reliance imported 900 million dollars of crude oil from Brazil which accounted for 32 percent of India´s total imports from Brazil. Overlall, Reliance accounted for 30 percent of India´s trade with Brazil in the period Jan-Oct 2010.

Reliance is also investing in oil exploration in Colombia and Peru.