REVENUE STRATEGY - RELIANCE INDUSTRIES

Reliance Industries Ltd., India's biggest company has committed to spend $25 billion on drilling, refining, chemicals and supermarkets.

But:
1. It is facing delays in delivery of drilling rigs to develop the gas field discovered in the Krishna Godavari basin.
2. It is forced to curb exploration because of a shortage of rigs and contractors,

So:
1. It may bid and work together for the first time with BP Plc, Exxon Mobil Corp. and Chevron Corp. for drilling rights in India:
a) To share rising exploration costs, resources, technology, knowledge, experience and risks and
b) Gain the expertise, equipment and experience gained by Exxon and BP for more than a decade in deep-sea areas such as the Gulf of Mexico.
2. It is banking on rigs from Transocean Inc., the world's largest offshore oil and gas driller, to drill in water depths of 7,000 to 10,000 feet and ensure India's biggest gas project starts on schedule.
3. It is directing rigs to drill wells used in developing the field, at the expense of exploration in new areas
4. It has more than 100 employees sitting with various contractors across the world to ensure that supply schedules are met.
5. It is in talks with GAIL (India) Ltd. and Bharat Petroleum Corp. to use their pipelines to sell part of the output. (GAIL's pipelines, which have a capacity to supply 140 million cubic meters a day of gas, are run at about 55 percent of capacity because of a lack of supply).

Alliances can remove obstacles to revenue.

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