Saudi Arabian Oil Co (Saudi Aramco), the world’s largest oil producer, will likely not pursue a plan announced last August to buy a 20 per cent stake in the oil-to-chemicals business of Reliance Industries Ltd (RIL) for $15 billion or ₹1.03-lakh crore.
Without explicitly stating that the deal was in trouble or has been called off, Reliance Industries Ltd (RIL) Chairman Mukesh Ambani, at the 43rd virtual annual general meeting, dropped enough hints at the way the potential deal would be headed. Due to unforeseen circumstances in the energy market and the Covid-19 situation, the deal has not progressed as per the original timeline, Ambani told shareholders.
“Our equity requirements have already been met. Nevertheless, we at Reliance value our over two-decade long relationship with Saudi Aramco and are committed to a long-term partnership,” Ambani said.
The two-decade long relationship refers to Aramco supplying oil to Reliance’s Jamnagar refinery “since its inception every single day for 20 years”.
At the same time, Ambanisaid, “Reliance has been approached by global companies for strategic partnerships in its petrochemical business, including in utilising these feedstocks”. He didn’t name the companies.