Reliance and Saudi Aramco have “mutually determined” to reevaluate a potential $15 billion investment by Saudi Aramco into Reliance’s oil-to-chemicals (O2C) business agreed to in 2019, according to reports and a statement from Reliance.
The deal, for a 20% stake sale in the unit, was announced in 2019 was delayed in 2020 due to the pandemic and low oil prices.
A statement said that two companies agreed “that it would be beneficial for both parties to re-evaluate the proposed investment in O2C business in light of the changed context,” Reliance said on Friday.
Reliance appears to be shifting its priorities as it pursues a green energy future, while Aramco said it would continue to look for investment opportunities in India. India’s Reliance is aiming to be carbon-neutral by 2035; India by 2070.
“The deep engagement over the last two years has given both Reliance and Saudi Aramco a greater understanding of each other, providing a platform for broader areas of cooperation. Saudi Aramco and Reliance are deeply committed to creating a win-win partnership and will make future disclosures as appropriate,” it added.
“Reliance shall continue to be Saudi Aramco’s preferred partner for investments in the private sector in India and will collaborate with Saudi Aramco & SABIC for investments in Saudi Arabia,” the statement said.
