RIL-Aramco deal likely if crude oil averages $65 per barrel
A fall in crude oil price and Aramco’s USD 75 billion annual dividend commitment may have delayed Saudi company picking a stake in Reliance Industries Ltd NSE 0.16 %’s oil-to-chemical unit (O2C), research firm Jefferies said.
Richest Indian Mukesh Ambani had in August 2019 announced talks for the sale of a 20 per cent stake in the O2C business, which comprises its twin oil refineries at Jamnagar in Gujarat and petrochemical assets, to the world’s largest oil exporter.
The deal was to conclude by March 2020 but has been delayed for reasons not disclosed by either company.
In a report, Jefferies said Saudi Aramco recently reiterated its focus on downstream investments in India and China and it could replicate its downstream investment model in China by investment in RIL’s O2C business.
