RIL gains after signing pact with Mexican firm PEMEX

Reliance Industries rose 0.36% to Rs 962 at 11:57 IST on BSE after the company said it signed an agreement with Mexican state-owned company, Petroleos Mexicanos, for cooperation in upstream oil and gas production.

The announcement was made before trading hours today, 5 December 2014.

Meanwhile, the BSE Sensex was up 12.44 points, or 0.04%, to 28,575.26.

On BSE, so far 90,000 shares were traded in the counter, compared with an average volume of 3.16 lakh shares in the past one quarter.

The stock hit a high of Rs 966.60 and a low of Rs 959.85 so far during the day. The stock hit a 52-week high of Rs 1,142.50 on 16 May 2014. The stock hit a 52-week low of Rs 794 on 28 February 2014.

The stock had underperformed the market over the past one month till 4 December 2014, falling 4.26% compared with 2.52% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 6.40% as against Sensex's 5.45% rise.

The large-cap company has an equity capital of Rs 3235.07 crore. Face value per share is Rs 10.

As per the memorandum of understanding (MOU) between Reliance Industries (RIL) and Petroleos Mexicanos (PEMEX), RIL will cooperate with PEMEX for assessment of potential upstream oil and gas business opportunities in Mexico and jointly evaluate value added opportunities in International Markets. RIL and PEMEX will also share expertise and skills in the relevant areas of oil and gas industry including for deep-water oil and gas exploration and production.

The MOU envisages sharing of RIL's pioneering expertise in deepwater development & best practices in East Coast of lndia and RIL's experience in shale gas in United States. RIL will also provide technical support and share experience with PEMEX for refining value maximisation and other technical optimization strategies.

RIL and PEMEX will also collaborate to exchange experiences on environmental and social responsibility front. The signing of the MOU marks further strengthening of the long standing relationship between RIL and PEMEX.

RIL's cooperation with PEMEX is in line with its growth strategy to explore opportunities to expand its international asset base in regimes having internationally attractive competitive terms. The company hopes to leverage its organizational capabilities and expertise to create long term value for Exploration and Production Business and for RIL on the whole.

RIL's consolidated net profit rose 1.7% to Rs 5972 crore on 4.9% decline in net sales to Rs 109797 crore in Q2 September 2014 over Q2 September 2013.

RIL is into petroleum refining and marketing, exploration & production and manufacture of petrochemicals.

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