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.

Reliance is also withdrawing its request filed with the National Company Law Tribunal to separate the O2C activity.

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.

Reliance recently unveiled its plans for the New Energy & Materials business by announcing the development of the Giga Dhirubhai Ambani Green Energy complex in Jamnagar. It will be one of the largest integrated renewable energy manufacturing facilities in the world, the company said.

The complex located in western India accounts for a significant portion of the oil-to-chemical processing assets.

The company will continue to be Aramco’s preferred partner for private sector investments in India and will work with Saudi Aramco and SABIC for investments in Saudi Arabia, Reliance added.

In October, Reliance said it had gained shareholder support to appoint Saudi Aramco chairman Yasir Al-Rumayyan as an independent director on its board.

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(Edited by : Ajay Vaishnav)

First publication: STI