Mukesh Ambani is about to make the biggest Foreign Investment
The chairman of Reliance Pvt Limited Mukesh Ambani said on Monday that Reliance is set to sell a 20% interest in its petroleum to Saudi Aramco's chemicals company in one of the country's biggest overseas investments.
Mukesh Ambani also said that it will be the biggest foreign investment in Reliance's history. He stated this statement at the company's annual general meeting in Mumbai. It is also one of India's biggest foreign investment ever.
The agreement was worth $75 billion, including credit. Saudi Aramco is the largest oil producer in the world. He has been discussing stake sales with Reliance as it intends to secure fresh crude markets. Crude oil is the basic raw material for petrochemical production.
Ambani also said that Saudi Aramco will also provide RIL's Jamnagar refinery with 500,000 barrels of crude oil per day on a long-term basis. It means great synergy between the world's largest oil producer and the world's largest integrated petrochemical and refinery complex.
He added that the collaboration will cover all the refining and petrochemical assets of Reliance, including its 51% risk in the joint project for petroleum retail. In Jamnagar, Gujarat, Reliance runs two refineries with a total annual capacity of 68.2 million tons. The focus is presently on growing the petrochemical and telecommunications business.
Reliance announced last week that it is setting up a joint project with global oil huge BP in which Reliance will hold a 51% stake.