Reliance Industries says Saudi Aramco deal on track despite COVID-19 crisis

• Reliance Industries had announced the deal with Aramco which was touted to be the biggest FDI deal in India so far in August last year

• Chairman Mukesh Ambani had said that Saudi Aramco will pick up a 20 percent stake in its O2C business for around $15 billion

New Delhi: Reliance Industries said on Thursday that despite the Coronavirus crisis and the subsequent lockdown imposed to contain infections, the due-diligence by Saudi Aramco for the planned investment in the oil to chemicals (O2C) business is on track as both the parties are committed and actively engaged.

"The company has approved a scheme of arrangement for transfer of oil to chemicals (O2C) Undertaking (as defined in the Scheme) of the company to Reliance O2C Limited as a going concern on slump sale basis for a lump sum consideration equal to the income tax net worth of the O2C Undertaking as on the appointed date of the Scheme," Reliance Industries said.

Reliance Industries had announced deal with Aramco in August 2019

Reliance Industries had announced the deal with Aramco which was touted to be the biggest Foreign Direct Investment (FDI) deal in India so far in August last year. While addressing shareholders at RIL's 42nd AGM in Mumbai, Chairman Mukesh Ambani had said that Saudi Aramco will pick up a 20 percent stake in its oil-to-chemicals (OTC) business for around $15 billion.

However, since August 2019, crude oil has dropped 64.52 percent. From $58.23 per barrel on August 15, 2019, it is now hovering around $20.66 after the US crude plunged into the negative territory few weeks ago.

Reliance Industries O2C

O2C undertaking of the Company comprises of entire oil-to-chemicals business of the Company consisting of refining, petrochemicals, fuel retail & aviation fuel (majority interest only) and bulk wholesale marketing businesses together with its assets and liabilities, said Reliance Industries.

"The scheme is subject to necessary statutory / regulatory approvals under applicable laws including approval of National Company Law Tribunal," said RIL.