Saudi Aramco , a global petrochemical giant and a major supplier of crude oil to Jamnagar refineries is likely to withdraw from a deal to buy 20 per cent stake in oil to chemical business (O2C) of the company with a valuation worth $ 75 billion. The deal took place in last August with Reliance Industries provisioningto trade one fifth of its oil to chemical business comprising twin refineries and petrochemical plants at Jamnagar in addition to 51 per cent share in fuel retailing venture.
According to privy sources, Saudi Aramco from the very beginning was not content over price tag of the deal. The Saudi Arabian Company analysing crude futures due to pandemic woes sought to seek a complete re-valuation, by proposing $ 50-60 billion worth for the oil to chemical business.
The company felt that the O2C business of Reliance required substantial investments and will not provide abundant quantities of diesel, petrol and ATF. With Reliance being firm over its decision of not resizing the dept, owner Mukesh Ambani at the Reliance Annual General Meeting on Wednesday stated that the deal with Saudi Aramco has been stalled due to “ unforeseen circumstances in the energy market and Covid-19 situation.