Even as the buzz around $16 billion deal between billionaire Mukesh Ambani-led Reliance Industries and world's largest oil producer Saudi Aramco gets louder, RIL said that it will not comment on media speculation and rumours.
Even as the buzz around $16 billion deal between billionaire Mukesh Ambani-led Reliance Industries and world’s largest oil producer Saudi Armaco gets louder, RIL said that it will not comment on media speculation and rumours. Responding to a query by Financial Express Online, Reliance Industries said, “As a policy, we do not comment on media speculation and rumours. Our company evaluates various opportunities on an ongoing basis.” RIL added that it has made and will continue to make necessary disclosures in compliance with obligations under Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations 2015 and its agreements with the stock exchanges.
Oil giant Saudi Aramco is in talks to buy a minority stake in the refining and petrochemicals businesses of Reliance Industries, Reuters reported citing sources familiar with the development. According to the report, Saudi Aramco is looking to pick up a 25% stake. The source told the agency that discussions were “serious.” With an annual profit of $110 billion in 2018 or Rs 7.7 lakh crore, Saudi Aramco remains the world’s most profitable firm.
Reliance Industries is India’s biggest refining and petrochemicals firm which runs a 1.4 million barrels per day refining complex at Jamnagar. It plans to expand capacity to 2 million bpd by 2030, Reuters reported citing plans shared with the Indian government.
Notably, Aramco is expanding its refining and petrochemical business globally by signing new deals and boosting the capacity of its existing plants. Last year, Saudi Aramco signed MoUs with Indian oil companies to be a part of $44 billion investment in West Coast refinery and petrochemical project called Ratnagiri Refinery and Petrochemicals. The deal was touted as one of the largest investments made by any foreign oil producer in India.
However, the planned refinery is facing delays, as thousands of farmers have reportedly refused to surrender land for it and the Maharashtra government is looking to move the plant’s location.
The deal talk with Reliance Industries comes after Saudi Crown Prince Mohammed bin Salman visited India in February and then said that he expected investment opportunities worth more than $100 billion over the next two years. Reuters noted that Mukesh Ambani has travelled to Saudi Arabia at least twice since December, discussing joint investment among other issues with Aramco’s chief executive, Amin Nasser.