Page 50 - Plastics News October 2019

BUSINESS NEWS

Sintex Plastics divests entire stake Reliance-BP complete Rs 25,000
in subsidiary crore investment to revive KG-

D6 block
intex Plastics Technology Limited informed the
Sdivestment of entire equity holding in indirect
wholly owned subsidiary, Sintex NP SAS last week. The eliance Industries (RIL) and its joint venture partner
company also informed that one of the lenders to Sintex RBP Plc have completed an investment of around
%$3/ /LPLWHG KDV ÀOOHG D FRPPHUFLDO VXLW DJDLQVW 6LQWH[ Rs 25,000 crore at its three offshore hydrocarbon
Plastics, Sintex BAPL and Sintex holding B.V. before the assets in Krishna Godavari (KG) D6, over the last two
commercial small cause court at Ahmedabad and obtained
an ex-parte injunction on dealing with, disposing or
creating any third party rights or encumbrances or parting
with the possession of or from alienating the shares of
Sintex NPSAS, or any part thereof. The company is taking
all possible measures for vacating the stay granted by
the commercial court in the interest of the transaction
and undertaking all such actions to defend its position.
SPIL has earlier decided on divestment as a part of
overall strategy to reduce debt at a consolidated level
and to ensure adequate funding for domestic business. years. The JV will invest another Rs 10,000 crore in
The company maintained that The management has the blocks which are slated to commence production
recognised one time impairment charge of Rs 5000 mn as between mid-next year and 2022. The companies
an exceptional item for investment in SPIL owing to the expect a production of one billion cubic feet (bcf) of
ongoing liquidity issues and change in target customer natural gas a day from its assets when all the three
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company till the time liquidity constraints are addressed throttle."Commercial production from R-Series will
and volumes with the customers in the private sector pick EHJLQ IURP PLG QH[W \HDU ZKLOH 6DWHOOLWH DQG 0- ÀHOGV
will start selling gas in 2021 and 2022, respectively,"
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of the overall investment of Rs 35,000 crore committed
by RIL and BP has been deployed to erect the deep-
water infrastructure. Mukesh Ambani, chairman, RIL
said at the last annual general meeting (AGM), "projects
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complex being executed anywhere in the world." RIL-BP
received approval for developing MJ (also known as D55)
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Block KG D6 integrated development plan. It had earlier
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up. Sintex Plastic Technology Limited delivers feasible GHHS ZDWHU JDV ÀHOG LQ -XQH DQG 6DWHOOLWHV FOXVWHU
and environment friendly solutions embracing wide LQ $SULO 7KH WKUHH ÀHOGV WRJHWKHU KDYH DERXW
variety from water storage solutions, interior, energy 3 trillion cubic feet (tcf) of discovered gas reserve.
solutions, electricity and SMC products, construction Gas production from KG D6 integrated development
with prefabricated solutions and meeting the industrial LV H[SHFWHG WR KHOS UHGXFH ,QGLD V LPSRUW GHSHQGHQFH
requirements with plastic storage and material DQG LW ZLOO DPRXQW WR RYHU SHU FHQW RI WKH FRXQWU\ V
handling products. projected gas demand in 2022, company sources said.

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