Reliance Industries Ltd (RIL) announced on Friday that it has agreed with Saudi Aramco to reassess the approximately $ 15 billion investment proposed by the oil giant in Reliance’s petroleum-chemicals (O2C) business. The sale of 20% of the unit’s shares was announced in 2019, but was delayed as oil prices and demand collapsed last year due to the pandemic.
“Due to the evolving nature of Reliance’s business portfolio, Reliance and Saudi Aramco have mutually determined that it would be beneficial for both parties to reassess the proposed investment in O2C business in light of the changed environment,” said RIL said in a statement Friday. .
The Mukesh Ambani-owned conglomerate added that Jamnagar happens to be “at the center” of its strategy to become a net zero carbon company.
Over the past two years, both firms have put significant effort into the due diligence process, despite COVID-19 restrictions. This was made possible through the mutual respect and long-standing relationship between the two organizations, Reliance said in a statement.
The complex located in western India accounts for a significant portion of the oil-to-chemical processing assets.
In October, Reliance said it had gained shareholder support to appoint Saudi Aramco chairman Yasir Al-Rumayyan as an independent director on its board.
(Edited by : Ajay Vaishnav)
First publication: STI