Reliance To Re-Evaluate Saudi Aramco’s Stake In Oil-To-Chemicals Arm
On Friday, India’s Reliance Industries Ltd announced that it has decided to reconsider Saudi Aramco’s proposed $15 billion investment in Reliance’s oil-to-chemicals (O2C) business.The sale of a 20% share in the unit was planned for 2019, but was postponed owing to the pandemic, which caused oil prices and demand to plummet last year.
Meanwhile, earlier this year, Reliance announced that it would invest 600 billion rupees ($8.08 billion) in Jamnagar to develop four “giga factories” to make solar cells and modules, energy storage batteries, fuel cells, and green hydrogen.
A large portion of the oil-to-chemicals assets are located in western India.
Reliance and Saudi Aramco have mutually concluded that it would be beneficial for both parties to re-evaluate the proposed investment in O2C business in light of the new context due to the evolving nature of Reliance’s business portfolio,” Reliance said on Friday.Jamnagar is at the “heart” of the oil-to-telecoms conglomerate’s aim to become a net carbon neutral firm, according to the company.
Reliance is also withdrawing its application filed with the National Company Law Tribunal for segregating the O2C business.
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