Reliance’s partnership with Saudi Aramco, BP not a retreat from energy business: Report
Reliance Industries’ partnership with Saudi Aramco for its USD 75 billion oil-to-chemicals business signals expansion, rather than retreat, as growth opportunities are expected to boost the petrochemical and refining vertical, market analyst firm Bernstein said.
Mukesh Ambani had in August last year announced initial agreements to sell a 20 per cent stake in the oil-to-chemical business to the Saudi national oil company. Also, a 49 per cent interest in fuel retailing business was sold to UK’s BP PLC for Rs 7,000 crore.
“Reliance has pivoted away from energy to the new economy. But energy still accounts for 64 per cent of EBITDA. While RIL has divested stakes to BP and Aramco, we expect RIL to grow their petrochemical and refining business given the secular growth opportunities,” it said in a report.
