Chevron may exit RPL

Global energy giant Chevron Corporation may exit Reliance Petroleum (RPL) by selling its 5% stake to Reliance Industries, reports Business Standard.

Recently, Reliance Industries undertook divestment of 4% stake in RPL for over Rs 40.23 billion. Reliance Industries' stake in RPL now stands at about 71%.

Chevron had bought 5% in RPL at Rs 60 a share during RPL`s public issue.
The US energy giant has the option to raise its stake to 29% either three months after the RPL project is commissioned or three years from the date the agreement was signed, whichever is later.

The agreement between the two was signed in April 2006.

RPL is setting up a refinery of 580,000 barrels per day at Jamnagar in Gujarat.

Chevron is not keen to increase its stake in RPL as the current valuations are high.

Shares of RPL declined Rs 5.45, or 2.6%, to close at Rs 204.05. The total volume of shares traded was 24,663,272 at the BSE. (Monday)