Aramco acquire 20% stake in Reliance’s O2C biz $75 bn

Aramco to acquire 20% stake in Reliance’s O2C biz for $75 bn

9:48 AM, 12th August 2019
Reliance Industries Chairman Mukesh Ambani addressing the shareholders at 42nd Annual General Meeting. Photo: Indian Express
Reliance Industries Chairman Mukesh Ambani addressing the shareholders at 42nd Annual General Meeting. Photo: Indian Express

MUMBAI, INDIA: Reliance Industries Limited said that Saudi Aramco has agreed to acquire a 20% stake in Reliance's Oil to Chemicals (O2C) business at an enterprise value of $75 billion.

Oil to Chemicals division includes the refining, petrochemicals and fuels marketing businesses of Reliance Industries.

Reliance said that this deal would be one of the largest foreign investments ever made in India.

As per the proposed investment, Saudi Aramco will supply 500 KBPD of Arabian crude oil to Reliance’s Jamnagar refinery on a long-term basis. Reliance’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.

Saudi Aramco and Reliance 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 Reliance’s refinery at Jamnagar.

“I am delighted to welcome Saudi Aramco 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,” said Mukesh Ambani, Chairman and Managing Director of Reliance Industries Limited.

The deal was announced at the 42nd Annual General Meeting of Reliance Industries Limited.

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