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Aramco to buy 20pc stake worth $75bn in Reliance

2019/08/13

MUMBAI

Saudi Aramco is set to acquire a 20 per cent stake with an enterprise value of $75 billion in the oil to chemicals division comprising the refining, petrochemicals and fuels marketing businesses of India’s Reliance Industries Ltd (RIL).

This would be one of the largest foreign investments ever made in India, said an RIL statement.

Saudi Aramco and RIL have a long-standing crude oil supply relationship of over 25 years. Saudi Aramco is the world’s largest and lowest cost-per-barrel producer of crude oil, is geographically close to India, and offers a wide range of crude supply options. To date it has supplied approximately 2 billion barrels of crude oil for processing at RIL’s refinery at Jamnagar.

RIL’s Jamnagar refinery is the largest and most complex refinery in the world, with deep integration of refining and petrochemical activities across multiple manufacturing facilities. The  proposed  investment  would  result  in  Saudi  Aramco  supplying  500  KBPD  of  Arabian crude oil to the Jamnagar refinery on a long-term basis.

Mukesh Ambani, chairman and managing director of RIL said: “I am truly delighted to welcome Saudi Aramco, one of the largest business enterprises in the world, as a potential investor in our Oil to Chemicals division. We have a long-standing crude  oil  relationship  with  Saudi  Aramco  and  we  would  be  happy  to  see  this  further strengthened with this investment. Saudi Aramco’s interest is a strong endorsement of the quality of our assets and operations as well as of the potential of India.”

Under the non-binding letter of intent (LOI), the proposed investment is subject to due diligence, and the executed definitive agreement will be subject to regulatory and other customary approvals. The parties will make an announcement once a definitive agreement is executed, the RIL statement said

RIL is India’s largest private sector company, with a consolidated turnover of $90.1  billion,  cash  profit  of  $  9.3  billion),  and  net  profit  of  $5.7 billion  for  the  year  ended  March  31,  2019.  RIL’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and digital services. – TradeArabia News Service
 






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