Reliance pulls plan to sell oil-to-chemicals stake to Aramco

Reliance Industries Ltd. scrapped a plan announced more than two years ago to sell a 20 per cent stake in its oil-to-chemicals unit to Saudi Aramco as the Indian company focuses on its renewable energy investments.

“Due to evolving nature of Reliance’s business portfolio, Reliance and Saudi Aramco have mutually determined that it would be beneficial for both parties to re-evaluate the proposed investment in O2C business in light of the changed context,” Reliance said on Friday in a statement, adding that it will continue to be Saudi Aramco’s “preferred partner” for investments in India’s private sector.

Reliance and Saudi Aramco had signed a non-binding letter of intent in August 2019 for a potential 20 per cent stake in Reliance’s oil-to-chemicals unit.

But since then, Reliance has shifted its focus to include a plan for developing one of the largest integrated renewable energy manufacturing facilities in the world. The complex would consist of solar photovoltaic module, battery, green hydrogen and fuel cell factories.

Reliance said it and Saudi Aramco spent two years performing due diligence before reaching a decision to reassess.