Billionaire Indian businessman Mukesh Ambani said that Saudi oil giant Aramco has agreed to take a 20 per cent stake in his Reliance Industries’ oil refinery and chemical business at an enterprise value of USD 75 billion.
Ambani made the announcement at the company’s annual general meeting, and said this would be the biggest foreign investment in the history of the company.
As part of the deal, Saudi Aramco will supply 500,000 barrels per day or 25 million tonnes per annum, of crude oil to Reliance’s twin refineries at Jamnagar in Gujarat that have a total capacity of 68.2 million tonnes per year.
Saudi Aramco will take 20 per cent stake in a proposed special purpose vehicle housing the twin refineries of Reliance as well as the firm’s petrochemical complex.
The Saudi national oil company, along with its partner UAE’s Abu Dhabi National Oil Co (ADNOC) has already taken a 50 per cent stake in a planned $60-billion mega refinery-cum-petrochemical complex to be built in the western state of Maharashtra by state-owned oil companies.
Reliance plans to expand its only-for-exports special economic zone refining capacity to just over 41 million tonne from current 35.2 million tonne, but does not have any plans to set up a new refinery in the country.
Saudi Arabia is keen to get a foothold in the world’s fastest-growing fuel market to get a captive customer for the crude oil it produces.