Mukesh Ambani on Monday announced a deal with Saudi oil giant Aramco, which is highest FDI in India till date. Addressing shareholders at RIL AGM 2019, Ambani said Saudi Aramco has agreed to take a 20 per cent stake in his flagship Reliance Industries' oil refinery and chemical business.
As per the deal, Saudi oil giant will acquire a 20 per cent stake in Reliance's oil-to-chemicals at an enterprise value of USD 75 billion (around Rs 5,32,466 crore).
Making the announcement at Reliance Industries' 42nd annual general meeting in Mumbai, Ambani said this would be the biggest foreign investment in the history of the company.
As part of the deal, the Saudi national oil company will supply 500,000 barrels per day or 25 million tonnes per annum, of crude oil to Reliance's twin refineries at Jamnagar in Gujarat. Crude oil is the basic raw material for the manufacturing of petrochemicals.
Reliance operates two refineries in Jamnagar, Gujarat, with a total capacity of 68.2 million tonnes per annum.
The Saudi Aramco, along with its partner UAE's Abu Dabhi National Oil Co (ADNOC) has taken a 50 per cent stake in a planned USD 60-billion mega refinery-cum-petrochemical complex in Maharashtra by state-owned oil companies, has a bullish outlook on India's energy demand and is keen on investing here.
Saudi oil giant Aramco is also keen on retailing fuel in India. A refinery in India can also be a base for it to export fuel to deficit countries in Europe and the Americas. India has a refining capacity of 247.6 million tonnes, which exceeded the demand of 206.2 million tonnes.
(With PTI inputs)