Reliance AGM 2019: Mukesh Ambani announces Saudi Aramco to invest $ 75 billion in Reliance’s Oil to Chemicals biz for 20% stake: Reliance Industries Limited (RIL) Chairman Mukesh Ambani has announced that Saudi Arabia would invest for a 20% stake in Reliance’s Oil to Chemicals (O2C) division today, August 12, 2019. Terming the deal as India’s largest foreign direct investment (FDI) till date, Ambani briefed the shareholders regarding the deal at the 42nd annual general meeting (AGM) of the company in Mumbai. While addressing the stakeholders, Ambani said that the Saudi Aramco has agreed to acquire 20 percent in Reliance’s oil refinery and chemical business at an enterprise value of $75 billion, which makes around Rs 5,32,466 crore.
Saudi Aramco and Reliance have joined hands to form a long-term Partnership in RIL’s O2C unit. Ambani noted that the investment is subjected to various due diligence and regulatory approvals. The deal further includes Saudi Aramco’s 51% stake in Reliance BP JV. The deal further says that the Aramco will supply 5,00,000 barrels of crude oil per day to RIL’s Jamnagar Refinery. Currently, the RIL’s Jamnagar Refinery is the world’s largest refining facility.
Based in Dhahran, Saudi Arabia, Saudi Aramco is one of the most profitable and largest companies across the globe. Officially called the Saudi Arabian Oil Company, Aramco is a Saudi Arabian national petroleum and natural gas company.
Reliance is currently operating two refineries at Jamnagar, Gujarat with a total capacity of 68.2 million tonnes per annum. While it has not been planning to set up a new refinery in the country, Reliance is mostly focused on amplifying its petrochemical and telecom business.