India’s Reliance Industries, controlled by mega-billionaire Mukesh Ambani, is set to sell a 20 percent stake in its oil and chemicals business to Saudi Aramco, according to an announcement on Monday.
“(This is) the biggest foreign investment in the history of Reliance,” Ambani said at his firm’s annual meeting in Mumbai, Reuters reports.
“It is also amongst the largest foreign investments ever in India.”
The deal valued the business at US$75 billion including debt, Ambani said.
Saudi Aramco, the world’s biggest oil producer, has been in talks with Reliance on the stake sale as it plans to secure new markets for its crude.
Aramco will also supply 500,000 barrels a day of crude oil on a long-term basis to Reliance’s Jamnagar refinery, Ambani said.
“This signifies perfect synergy between the world’s largest oil producer and the world’s largest integrated refinery and petrochemicals complex,” he added.
The partnership will cover all of Reliance’s refining and petrochemical assets, including its 51 percent stake in the petroleum retail joint venture, Ambani said.
Last week, Reliance announced that it was forming a fuel retailing joint venture with global oil major BP in which Reliance would own a 51 percent stake.
– Contact us at [email protected]