Mukesh Ambani, chairman and managing director of Reliance Industries Ltd (RIL), expects the company’s proposed strategic partnership deal with Saudi Aramco in its oil-to-chemical (O2C) business to be formalised this year.
Speaking at the company’s annual general meeting on Thursday, Ambani also announced the joining of Yasir Al-Rumayyan, chairman of Saudi Aramco and the governor of the Public Investment Fund (PIF), onto the board of Reliance as an independent director.
RIL had in 2019 announced its interest to sell a 20 percent stake in the company’s flagship chemicals and refining business to Saudi Aramco in a deal valued at $15 billion.
The deal was to conclude by March 2020, but has been delayed for reasons not disclosed by either company.
“As an important part of this vision of achieving accelerated growth, we look forward to welcoming Saudi Aramco as a strategic partner in our O2C business,” Ambani said.
“Despite several challenges due to Covid-19, we have made substantial progress in the past year in our discussions. This continued engagement and resolve from both sides, even during this pandemic, is a testimony of the strong relationship between Saudi Aramco and Reliance.
“I expect our partnership to be formalised in an expeditious manner during this year,” he added.
Mukesh Ambani, chairman and managing director of Reliance Industries Ltd (RIL)
Oil-to-chemicals (O2C) is Reliance’s key business, contributing about 60 percent of the conglomerate’s revenue in the year ended March. Its Jamnagar refining complex has the capacity to process about 1.36 million barrels of oil a day.
RIL carved out its O2C business in the last fiscal year into a separate entity to facilitate onboarding of strategic partners like Aramco.
O2C’s aim, RIL said, is to maximise crude to chemicals conversion while creating a sustainable growth business.
On the induction of Aramco’s chairman on the RIL board, Ambani said: “He is one of the most renowned names in energy and finance globally. I am sure that we will immensely benefit from his rich experience of running one of the world’s largest companies, and also one of the largest sovereign wealth funds in the world.”
Yasir Al-Rumayyan, chairman of Saudi Aramco and the governor of the Public Investment Fund (PIF)
Ambani added that Al-Rumayyan joining the Reliance board was also the beginning of the ‘internationalisation of Reliance’.
“You will hear more about our international plans in the times to come,” the Reliance chairman added.
Follow us on
