RIL Carves Out Oil-To-Chemicals Business, Welcomes Strategic Investors
On Sunday, Reliance Industries Ltd. highlighted the details of its plan to separate its oil-to-chemicals (O2C) business into a separate entity. According to the plan, RIL’s oil-to-chemicals assets, which include its refining, petrochemicals, fuel retail and bulk wholesale marketing businesses, along with its assets and liabilities will be transferred to a new unit named as Reliance O2C Ltd. on a going concern basis. The company revealed the details six months after it first put forward the proposal as an important step towards its stake sale. RIL had decided to carve out its assets as a part of its target to sell 20% stake in its refining and chemicals business to the world’s largest crude oil producer, Saudi Aramco. The deal, however, has been delayed as Aramco is currently adjusting its capex plans and channelizing its dividend commitments due to falling energy market as Covid-19 pandemic hammered the global economy. Company’s assets, Reliance Ethane Holding Pte Ltd, Reliance Gas Pipelines Ltd, Gujarat Chemical Port Ltd, Reliance Corporate IT Park Ltd, Reliance Industrial Infrastructure Ltd, among others, will not be part of the oil to chemicals undertaking. The details also highlighted the company’s keen interest in inviting strategic investors to its O2C business.