Reliance, Saudi Aramco to re-evaluate oil-to-chemicals investment proposals

Reliance Industries Ltd (RIL) said that it is withdrawing its application to get necessary approvals to hive off its oil-to-chemicals (O2C) business into a separate unit due to the evolving nature of its business portfolio.

The current application with NCLT for segregating the O2C business from RIL is being withdrawn, the company said in a late evening exchange filing on November 19.

RIL also said it has mutually determined with Saudi Aramco that it would be beneficial for both parties to re-evaluate the proposed investment in the O2C business in light of the changed context. Hiving off the O2C business would have paved the way for a stake sale in the new company to Saudi Aramco.

A statement released by Reliance read: “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. Consequently, the current application with NCLT for segregating the O2C business from RIL is being withdrawn.”

RIL said it shall continue to be the preferred partner of Saudi Aramco for investments in the private sector in India, adding that will collaborate with the state-owned petroleum and natural gas company of Saudi Arabia and its chemical manufacturing offshoot SABIC for investments in Saudi Arabia.