Saudi Aramco, officially known as Saudi Arabian Oil Company, is trying hard to buy a $15 billion stakes at the Reliance Industries Ltd.’s chemical and refinery business. The Reliance industry experienced a sudden downfall in their shares prices in mid-July due to the unforeseen market conditions due to the pandemic. This deal can bring a significant change in the market amidst the current economic crisis.
Talking about the same, Aramco Chief Executive, Amin Nasser, quoted,
Reportedly, Aramco has a net income of 75% in the second quarter of the year. The pandemic has brought a halt to travel and business, resulting in a decrease in the demand for fuel and crude oil. Ambani claims that earlier, Aramco was ready to buy 20% stakes from Reliance’s petrochemical business, which is worth $75 billion.
Reliance and Aramco’s partnership can help Aramco achieve its goal to double the refining capacity from 8 million to 10 million barrels each day. The company plans to begin working for 400,000 barrel-a-day Jazan, a refinery that will be located at the Southern Coast of Saudi Arabia.
Aramco has expanded its business globally, including the world’s biggest refinery in the U.S. and other ongoing projects in South Korea and Japan. As of now, they are also planning to establish a business in Chinese with new ventures.
Reliance’s requirement for cash has reduced lately after raising $30 billion from its recent partnership with Google and Facebook and selling its shares to their existing shareholders.