Reliance Industries Chairman and Managing Director Mukesh Ambani has announced a deal with Saudi Arabian national petroleum and natural gas company Aramco. Saudi Aramco will acquire a 20 percent stake in Reliance’s oil-to-chemicals (OTC) business for $15 billion.
The deal which Mukesh Ambani termed as India’s largest foreign direct investment till date was announced at Reliance Industries’ 42nd annual general meeting.
Mukesh Ambani met with Saudi Energy Minister Khalid Al Falih last year to discuss opportunities for joint investments in petrochemical, refining, and communications projects.
According to the deal which is subjected to regulatory clearance, Saudi Aramco will supply 500,000 barrels per day or 25 million tonnes per annum, of crude oil to Reliance. The supply will be made to Reliance’s twin refineries at Jamnagar in Gujarat, the world’s largest refining facility.
The Jamnagar refining complex can process 1.4 million barrels per day. According to reports, the capacity is likely to increase to 2 million barrels per day by 2030.
Reliance also has plans to expand its only-for-exports special economic zone (SEZ) refining capacity to just over 41 million tonnes from the current 35.2 million tonnes. However, it does not plan to set up any new refineries in the country.
Recently, Reliance also announced a joint venture with London-based oil and gas company BP. While Reliance will hold a 51 percent stake in this new joint venture company, BP will own the remaining 49 percent stake.
Saudi Aramco and Adnoc have jointly taken a 50 percent stake in a planned $60 billion mega refinery-cum-petrochemical complex in Maharashtra to be operated by state-owned oil companies.