Saudi Aramco has struck a $15 billion deal with Asia's richest man for a stake in the world's biggest refinery

FILE PHOTO: An Aramco employee walks near an oil tank at Saudi Aramco's Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah/File Photo

  • Saudi Aramco has agreed to acquire a 20% stake in
    Reliance Industries’ refining and petrochemicals business, which is
    valued at $75 billion.
  • The $15 billion deal between the world’s largest oil
    producer and Asia’s richest man, Reliance chairman and largest
    shareholder Mukesh Ambani, gives the Saudi Arabian company a stake
    in the world’s biggest refinery.
  • Reliance will purchase 500,000 barrels of crude oil a
    day from Saudi Aramco as part of the deal.
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Saudi Aramco has
agreed to acquire
a 20% stake in Reliance Industries’ refining
and petrochemicals business, which is valued at $75 billion.

The $15 billion deal between the world’s largest oil producer
and Mukesh Ambani — Asia’s richest man as well as Reliance’s
chairman and largest shareholder — gives it a stake in the
Jamnagar Refinery in India, which can process an unmatched 1.2
million barrels of crude oil per day.

The Saudi Arabian oil titan has been investing heavily in
refineries as it looks to double its daily processing capacity to
as much as 10 million barrels of crude oil by 2030, according to

Bloomberg
. Meanwhile, Reliance has been seeking to sell off
large parts of its assets, which include cell-phone towers and gas
fields, to lower its debt — estimated at $32 billion by
Bloomberg.

Saudi Aramco’s profits slumped 12% to just under $47 billion in
the first half of this year,
according to its earnings release
.

“I am truly delighted to welcome Saudi Aramco, one of the
largest business enterprises in the world, as a potential investor
in our Oil to Chemicals division,” Ambani said in a statement. “We
have a long-standing crude oil relationship with Saudi Aramco and
we would be happy to see this further strengthened with this
investment.”

Reliance has agreed to purchase 500,000 barrels of crude oil a
day from Saudi Aramco as part of the deal, Ambani said.

“Saudi Aramco’s interest is a strong endorsement of the quality
of our assets and operations as well as of the potential of India,”
he added. 

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Source: FS – All – Economy – News
Saudi Aramco has struck a billion deal with Asia's richest man for a stake in the world's biggest refinery