Reliance to reevaluate $15b stake sale in O2C arm to Saudi Aramco

The Saudi Aramco logo is pictured at the company's oil facility in Saudi Arabia, REUTERS/Maxim Shemetov

India’s Reliance Industries Ltd said on Friday it had decided with Saudi Aramco to reevaluate the oil giant’s proposed roughly $15 billion investment in Reliance‘s oil-to-chemicals (O2C) business.

The 20% stake sale in the unit was announced in 2019, but was delayed as oil prices and demand crashed last year due to the pandemic.

Meanwhile, Reliance, earlier this year, said it would invest 600 billion rupee ($8.08 billion) to build four ‘giga factories’ at Jamnagar to produce solar cells and modules, energy storage batteries, fuel cells and green hydrogen.

The complex in western India accounts for a major part of the oil-to-chemicals assets.

“Due to evolving nature of Reliance‘s business portfolio, Reliance and Saudi Aramco have mutually determined that it would be beneficial for both parties to re-evaluate the proposed investment in O2C business in light of the changed context,” Reliance said on Friday.

The oil-to-telecoms conglomerate added Jamnagar happens to be at the “centre” of its strategy to become a net carbon zero company.

Reliance is also withdrawing its application filed with the National Company Law Tribunal for segregating the O2C business.

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

In October, Reliance said it had won shareholders’ backing to appoint Saudi Aramco Chairman Yasir Al-Rumayyan as an independent director to its board.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.