The Strategist

Saudi Aramco to pay $ 10-15 bln for Indian Reliance Industries

04/17/2019 - 15:24

Saudi Aramco, the Saudi state oil company, is negotiating purchase of up to 25% in the oil refining and petrochemicals business of an Indian corporation Reliance Industries, (RIL), The Times of India reported.

Saudi Aramco to pay $ 10-15 bln for Indian Reliance Industries
The Saudis are pondering a share worth $ 10-15 billion. Based on these estimates, the entire Reliance Industries business in refining and petrochemicals may cost $ 55-60 billion. An agreement on the price may take place in June. The consultant for the possible transaction is the investment bank Goldman Sachs.

"RIL has become a very large company; it combines various assets,from retail to the telecommunications industry. These assets need to be divided. It makes sense to allocate some divisions. This will help raise funds," said a source.

In April 2018, Saudi Aramco concluded an contract with a group of Indian oil refineries to take part in a refinery construction project on the west coast of India. The project’s cost is estimated at $ 44 billion. The refinery will be able to take 1.2 million barrels of oil per day and make 18 mln tons of oil products year.

Saudi Aramco is the state-owned oil company of Saudi Arabia, founded in 1933. The headquarters is located in Dhahran.

Reliance Industries Limited (RIL) is engaged in exploration and production of hydrocarbons, oil refining and sale of petroleum products, telecommunications business and retail sales. RIL is headquartered in Mumbai.