Reliance Considering Refinery Stake Sale to Aramco, Adnoc
(Bloomberg) -- Indian billionaire Mukesh Ambani’s Reliance Industries Ltd. is considering selling as much as 25 percent of its refinery business in a deal that could fetch at least $10 billion, people with knowledge of the matter said.
Reliance is sounding out potential investors including state-owned Saudi Arabian Oil Co. and Abu Dhabi National Oil Co. to gauge their interest, according to the people, who asked not to be identified because the information is private. Aramco has also been considering investing in a new Indian refinery that Reliance is planning to build, the people said.
Discussions are at an early stage, and valuation could be a hurdle to any agreement on a stake sale, the people said. Aramco has been weighing various deals that would increase its exposure to Reliance’s refining operations, though it hasn’t made a decision on what form any eventual investment would take, the people said.
An Adnoc spokesman said “there is no basis in fact to this speculation.” Aramco declined to comment in an emailed statement.
“Our company evaluates various opportunities on an ongoing basis,” Reliance said in an emailed statement, declining to comment further. The Times of India reported earlier Wednesday that Aramco is in talks to buy a stake in Reliance’s refinery and petrochemicals business, citing unidentified people.
Middle Eastern oil giants like Aramco and Adnoc have been expanding into downstream operations as they seek to move from being pure producers to becoming more integrated energy companies. Reliance’s debt has risen over the past few years, as the Indian conglomerate poured money into new sectors such as telecommunications, and stood at $32 billion at the end of December, data compiled by Bloomberg show.
Partnership Talks
Reliance has been considering building a third plant at its giant Jamnagar complex in western India’s Gujarat state, Bloomberg News reported in November. The proposed facility would be able to process as much as 30 million tons of crude per year, which would boost its oil-refining capacity by about half, people with knowledge of the matter said at the time.
Ambani, Asia’s richest man, met with Saudi Energy Minister Khalid Al-Falih in December to discuss opportunities for joint investments in petrochemical, refining and communications projects, according to a tweet from the latter at the time.
Aramco has been targeting refining deals in India since at least last year, when Chief Executive Officer Amin Nasser told reporters that the firm wanted to double capacity to produce gasoline and other fuels.
--With assistance from Baiju Kalesh, Vinicy Chan, Saket Sundria, Mahmoud Habboush, Verity Ratcliffe, Javier Blas and Ruth David.To contact the reporters on this story: Nishant Kumar in London at nkumar173@bloomberg.net ;Dinesh Nair in London at dnair5@bloomberg.net ;Archana Narayanan in Dubai at anarayanan16@bloomberg.net ;Anto Antony in Mumbai at aantony1@bloomberg.net To contact the editors responsible for this story: Ben Scent at bscent@bloomberg.net Amy Thomson, Matthew Monks
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- USA Driving Activity to Increase to All-Time Highs
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- I Squared Eyes Full Ownership of Europe Gas Storage Firm
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension