Mukesh Ambani announces that Saudi Aramco will buy 20% stake in Reliance Industries’ oil refinery

Reliance Industries Chairperson Mukesh Ambani announced on Monday that Saudi Arabian giant Aramco will buy a 20% stake in his flagship Reliance Industries’ oil refinery and chemical business. Aramco will buy the shares at a cost of $75 billion (Rs 5.32 lakh crore), he added according to PTI.

Ambani said after the 42nd annual general meeting of Reliance Industries that this would be the biggest investment in the history of the company. The deal will obligate Saudi Aramco to supply 5,00,000 barrels of crude oil per day to Reliance’s twin refineries at Jamnagar in Gujarat. The total capacity of the two refineries is 68.2 million tonnes per annum.

Reliance Industries wishes to transform the Jamnagar refinery from a producer of fuels to chemicals, Mint reported. “The objectives are to preserve as well as upgrade existing refinery margins, while maximising asset utilisation for a sustainable competitive cost of chemicals,” the firm said in its 2018-’19 annual report.

Reliance Industries eventually aims to convert 70% of refined crude in the Jamnagar facility to competitive chemical building blocks of olefins and aromatics. “All refined products priced below crude shall be eliminated for chemicals at the initial stage,” the annual report said. “Final fuel de-risking shall target the…

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Author: Scroll Staff

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