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Reliance Industries signs non-binding LOI with Saudi Aramco

12 Aug 2019 Evaluate

Reliance Industries (RIL) and Saudi Aramco have signed a non-binding Letter of Intent (LOI) regarding a proposed investment in the Oil to Chemicals (O2C) division comprising the Refining, Petrochemicals and fuels marketing businesses of RIL. Saudi Aramco to acquire 20% stake in O2C division of the company and it is based upon an Enterprise Value of $75 billion. This would be one of the largest foreign investments ever made in India.

Saudi Aramco and RIL have a long-standing crude oil supply relationship of over 25 years. The proposed investment would result in Saudi Aramco supplying 500 KBPD of Arabian crude oil to the Jamnagar refinery on a long term basis.

Reliance Industries is India’s largest private sector company. The company’s activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, retail and 4G digital services.

Peers
Company Name CMP
Reliance Industries 1177.30
Indian Oil Corpn. 126.05
Bharat PetroleumCorp 286.70
HPCL 328.20
MRPL 174.00
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