Never miss a great news story!
Get instant notifications from Economic Times
AllowNot now


You can switch off notifications anytime using browser settings.

News

11,464.0035.7
Stock Analysis, IPO, Mutual Funds, Bonds & More

RIL announces one of India's biggest FDI deals; Saudi Aramco to pick 20% stake in its OTC biz

Aramco to supply 5,00,000 barrels per day of crude oil to Jamnagar Refinery.

ETMarkets.com|
Updated: Aug 12, 2019, 01.29 PM IST
0Comments
Reliance to sell 20% stake in oil to chemicals business to Saudi Aramco
Reliance to sell 20% stake in oil to chemicals business to Saudi Aramco
Reliance Industries (RIL) Chairman Mukesh Ambani on Monday announced a deal with Saudi Aramco, which he termed as one of India's largest foreign direct investments till date.

As per the deal, Saudi Aramco will acquire a 20 per cent stake in Reliance's oil-to-chemicals (OTC) business at an enterprise value of $75 billion. Oil-to-chemicals division, formed by combining refining and petrochemicals businesses, coverts petroleum into chemicals and achieved Rs 5.7 lakh crore revenue in FY19.

Ambani was addressing shareholders at the 42nd AGM of the company in Mumbai. He said the Saudi Aramco deal will take place at an enterprise value of $75 billion, subject to regulatory clearance.

Saudi Aramco will also supply 5,00,000 barrels per day of crude oil on a long-term basis to RIL’s Jamnagar Refinery, the world’s largest refining facility as per the deal.

Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national petroleum and natural gas company based in Dhahran, Saudi Arabia. It is one of the largest companies in the world by revenue, and is said to be the most profitable company in the world.

The Jamnagar refining complex has a capacity to process 1.4 million barrels per day (bpd). It plans to expand capacity to 2 million bpd by 2030, according to plans shared with the Indian government.

Mukesh Ambani said his company is the only diversified Indian enterprise with three major growth engines in one single corporate entity – oil-to-chemicals division, Jio and Retail. All three have done exceedingly well in the past year, he said.

Also Read

Saudi Aramco interested in buying government's stake in BPCL

CCI approves Saudi Aramco's acquisition of 70% stake in SABIC

Saudi Aramco restores oil output earlier than expected

Saudi Aramco IPO unlikely to happen this year after oil attacks

Saudi Aramco hires UBS, Deutsche as bookrunners for its IPO-sources

Comments
Add Your Comments
Commenting feature is disabled in your country/region.
Download The Economic Times Business News App for the Latest News in Business, Sensex, Stock Market Updates & More.

Other useful Links


Follow us on


Download et app


Copyright © 2019 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service