Mukesh Ambani led Reliance Industries (RIL) announced a $15 Billion foreign direct investment (FDI) deal with oil giant Saudi Aramco which will pick up a 20 per cent stake in Reliance's oil-to-chemicals (OTC) business, Economic Times has reported.
This deal is expected to take place at an enterprise value of $75 billion which will peg the value of Aramco’s stake at $15 billion.
This announcement was made by Ambani at RIL’s annual general meeting (AGM) In Mumbai on Monday (12 August).
“This signifies the perfect synergy between the world’s largest oil producer and world’s biggest integrated refinery and petrochemicals complex”, Ambani was quoted as saying.
Saudi Arabia’s national petroleum and natural gas company would also supply RIL’s Jamnagar oil refinery with a daily input of 5 lakh barrels on a long term basis. The refinery currently has a processing capacity of 14 lakh per day. Reliance plans to increase it to 30 lakh by 2030.
As per analysts, this standalone deal would constitute A large chunk of Saudi Crown Prince Mohammad Bin Salman’s $100 billion FDI investment pledge to India, made this February.