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.