INTERNATIONAL - The world’s biggest crude producer will soon own a part of the world’s biggest oil refinery.
Saudi Aramco will buy a 20 percent stake in the oil-to-chemicals business of India’s Reliance Industries Ltd, including the 1.24 million barrels-a-day Jamnagar refining complex on the country’s west coast, Reliance Chairman Mukesh Ambani said at the company’s annual general meeting in Mumbai. Reliance values its oil-to-chemicals division at $75 billion including debt, implying a $15 billion valuation for the stake.
The move is the latest in a spree of Aramco refinery investments as the company plans to double its processing network to handle as much as 10 million barrels a day by 2030, locking in friendly buyers for the kingdom’s crude. As part of the deal, Reliance will agree to a long-term purchase of 500,000 barrels of crude a day from Aramco, Ambani said.
“This signifies the perfect synergy between the world’s largest oil producer and world’s biggest integrated refinery and petrochemicals complex,” Ambani said.
The deal should be completed by March and is subject to due diligence, definitive agreements and regulatory and other approvals, Ambani said. He didn’t say how the deal would be structured.