Saudi Aramco to buy 20% in RIL's oil-to-chemical business for $75 bn
12 August 2019
Reliance Industries chairman Mukesh Ambani announced that Saudi Aramco will invest $75 billion to acquire a 20 per cent stake in RIL's oil-to-chemical business.
Ambani announced this massive foreign investment in RIL’s Jamnagar facility at the 42nd annual general meeting (AGM) of the company in Mumbai.
"In the largest foreign investment in India, Saudi Aramco and Reliance Industries have agreed to form a long-term partnership. Aramco will buy a 25 per cent stake in oil-to-chemical business for an enterprise value of $75 billion," Ambani said at the the company’s AGM.
Saudi Aramco will supply 500,00 barrels of crude oil a day to RIL's Jamnagar refinery, he said.
The partnership will cover all of Reliance's refining and petrochemicals assets, Ambani said.
"This signifies perfect synergy between the world's largest oil producer and the world's largest integrated refinery and petrochemicals complex," he added.
Earlier this month, RIL and UK's BP Plc have formed a new fuel retail joint venture. The new joint venture will also include RIL's aviation turbine fuel (ATF) business which currently operates at over 30 airports across India. RIL will hold 51 per cent and BP will hold 49 per cent in the new JV.
Mukesh Ambani went on to say that Reliance Industries has a very clear roadmap to becoming a zero net debt company in the next 18 months. "We expect to complete transactions with Saudi Aramco and BP within this financial year. These are expected to generate inflow of Rs 1.15 lakh crore," he said.