Saudi Arabia’s state power group is in talks with Mukesh Ambani’s Reliance Industries to purchase a minority stake within the Indian firm’s refining and petrochemicals enterprise, in keeping with three individuals accustomed to the discussions.
Saudi Aramco, the world’s largest crude producer, has ramped up investments in overseas refineries in recent times, notably in fast-growing Asia. It has lengthy sought a foothold within the Indian market because it banks on the nation’s rising oil demand to lock in crude gross sales.
A Occasions of India report stated that Saudi Aramco was in talks to purchase as much as a 25 per cent stake valued at round $10-15bn, which might worth the corporate’s refining and petrochemicals companies at almost $60bn.
Nonetheless, Reliance was looking for a better valuation of upwards of $80bn for the division, in keeping with one individual near the talks. The individual stated the corporate had additionally initiated discussions very just lately with the Abu Dhabi Nationwide Oil Firm (Adnoc).
Mr Ambani, the richest man in Asia, visited Saudi Aramco’s headquarters in Dhahran in February. Saudi Crown Prince Mohammed bin Salman and officers from the dominion, together with power minister Khalid al-Falih, have additionally made journeys to India in latest months.
Reliance owns India’s largest refining and petrochemicals complicated within the state of Gujarat. The refinery processes 1.4m barrels a day and the corporate is planning a big growth of its capability within the coming decade.
Reliance, which has for a very long time been in discussions with Saudi Aramco, supplied the corporate a 10 to 20 per cent stake however the kingdom was looking for a higher share, one individual briefed on the matter stated.
Final 12 months Saudi Aramco introduced it could collectively develop a $44bn refinery and petrochemicals complicated within the state of Maharashtra with a consortium of Indian corporations, however the venture has been stricken by delays.
Saudi Aramco raised $12bn in its first worldwide bond sale this month after drawing a record-breaking $100bn in orders. The launch marked a landmark second for the oil firm that disclosed its financials for the primary time in its 86-year historical past, exhibiting it to be the world’s most worthwhile firm.
Saudi Aramco didn’t instantly reply to a request for remark. Reliance stated: “We don’t touch upon media hypothesis and rumours. Our firm evaluates numerous alternatives on an ongoing foundation.” Adnoc declined to remark.
Extra reporting by Stephanie Findlay, Henny Sender and Simeon Kerr