Saudi Aramco to acquire 20% stake in RIL

Saudi Aramco to acquire 20% stake in RIL

Mukesh Ambani, India’s richest man and RIL’s Chairman, announced a huge business deal yesterday, saying, while announcing the deal at the 42nd Annual General Meeting of the Company in Mumbai on Monday: “This signifies perfect synergy between the world’s largest oil producer and the world’s largest integrated refinery and petrochemicals complex”.

Ambani said that Saudi Aramco is to acquire a 20% stake in RILs’ oil-to-chemicals company, worth $75bn, according to Quartz India.

“Our transactions with Saudi Aramco and BP will create ‘win-win’ relationships, generating significant strategic value for our partners. We expect to complete these transactions within this financial year, subject to definitive agreements, due diligence, regulatory and other customary approvals. The commitments from these two transactions are about ₹1.1 lakh crore,” Ambani said.

“This program to aggressively pursue deleveraging in businesses such as OTC, fiber and tower, and emerge as a zero net-debt company in the next 18 months, will strengthen the consolidated balance sheet, leading to strong valuation re-rating of the stock. RIL continues to remain as the pre-eminent play on the Indian economic juggernaut, that is likely to touch $10tn by 2030,” Ambani said.

Ambani added: “Saudi Aramco will supply 500 thousand barrels of crude oil per day to the refinery of the Panjman of RIL, after the acquisition of the 20% stake”.

Ambani pointed out that the RILs’ “Jamanjar” refinery in Gujarat has a capacity to process 1.4 million barrels per day and plans to expand its capacity to two million barrels per day by 2030.

Ambani also confirmed that RIL is the only diversified Indian company with “three major growth engines in one corporate entity, the oil-to-chemicals division, the telecommunications company “Geo”, and the retail business”.

“The future of India- as well as the future of RIL- has never looked as brighter as it seems to me now,” Ambani said.