New Delhi: Reliance Industries (RIL), is transferring all its overseas oil assets to a new company - Reliance Exploration and Production DMCC. The subsidiary will be headquartered in Dubai and will first take over the assets RIL has secured in the West Asian countries.
Much like OVL, the investment arm for ONGC's overseas oil assets, the new RIL subsidiary will be the holding company for all overseas upstream assets in oil and gas. This restructuring is being done to reduce the risks on RIL's balance sheet as many of these oil assets are in politically risk-prone areas.
RIL, which had confined itself mainly to exploration and production within India, has now taken up overseas expansion in a major way.