Home / Companies / News /  Saudi Aramco to acquire 20% stake in RIL's oil-to-chemical business

Mumbai: Reliance Industries chairman and managing director Mukesh Ambani on Monday announced a deal with Saudi Aramco, terming it India's largest foreign direct investment till date. As part of the deal, Saudi Aramco will acquire a 20% stake in RIL's oil-to-chemicals (OTC) or refining and petrochemicals business at an enterprise value of $75 billion.

The deal follows RIL announcing a joint venture with BP wherein the latter will pick up 49% stake in the former’s petroleum retailing business for 7,000 crore.

Reliance has developed an oil-to-chemical strategy to transform the Jamnagar refinery from a producer of fuels to chemicals.

Also read: Reliance AGM 2019: Mukesh Ambani announces Jio Fiber launch date, price

"The objectives are to preserve as well as upgrade existing refinery margins, while maximising asset utilisation for a sustainable competitive cost of chemicals," RIL said in its 2018-19 annual report.

RIL has developed a multi-zone catalytic cracking (MCC) process, which converts a wide range of feedstock to high-value propylene and ethylene in a single riser.

The company eventually wants to achieve an over 70% conversion of crude refined in Jamnagar to competitive chemical building blocks of olefins and aromatics. The Jamnagar refinery product slate, at the culmination of oil-to-chemical transition, shall be only jet fuels and petrochemicals.

"All refined products priced below crude shall be eliminated for chemicals at the initial stage. Final fuel de-risking shall target the elimination of gasoline, alkylate and diesel, synchronised to the global evolution of E-mobility and transport fuel demand decline," RIL said in its annual report.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Recommended For You

Trending Stocks

Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout