NEW DELHI: Reliance Industries Ltd (RIL) and Saudi Aramco on Saturday mutually decided to re-evaluate the proposed $15 billion investment by Aramco in the oil-to-chemical (O2C) business in the light of Reliance’s forays into the energy sector. The firm, in a statement informed that it is also withdrawing the application with NCLT for segregating O2C business from RIL.
“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 re-evaluate the proposed investment in O2C business in light of the changed context,” said RIL in a statement.
In August 2019, RIL announced to sell a 20% in the oil-to-chemicals (O2C) business, which comprises its twin oil refineries at Jamnagar in Gujarat, petrochemical assets and 51% stake in fuel retailing joint venture with BP to Saudi Aramco. It was then called the biggest foreign investment in Reliance history. The company had announced the deal would close by March 2020. However, the deadline was missed and the company blamed Covid restrictions.
The talks seem to be reset as Reliance is making entry into the new energy business by investing $10 billion in alternative energy. The company recently unveiled its plans for the Renewable Energy & New Materials businesses by announcing the development of Dhirubhai Ambani Green Energy Giga Complex at Jamnagar. It called the complex the largest integrated renewable energy manufacturing facilities in the world.
“Jamnagar, which accounts for a major part of the O2C assets, is envisaged to be the centre for Reliance’s new businesses of Renewable Energy & New Materials, supporting the Net Zero commitment,” RIL said, adding that the deep engagement over the last two years has given both the firms a greater understanding of each other, providing a platform for broader areas of cooperation.