Mukesh Ambani's Reliance Industries Limited (RIL) has announced a revaluation of their deal with Saudi Arabian company Saudi Aramco. Industries Limited (RIL) and Saudi Aramco have mutually agreed to re-evaluate the proposed investment of the latter in RIL's 'O2C' (Oil to Chemical).
"Over the past two years, both the teams made significant efforts in the process of due diligence, despite Covid restrictions. This has been possible due to the mutual respect and long-standing relationship between the two organizations," RIL said in a statement on Friday.
"Reliance recently unveiled its plans for the 'New Energy & Materials' businesses by announcing the development of the Dhirubhai Ambani Green Energy Giga Complex at Jamnagar. It will be among the largest integrated renewable energy manufacturing facilities in the world," it added.
Jamnagar intends to be the center for Reliance's new businesses of 'Renewable Energy & New Materials', supporting the net-zero commitment as they hold the major part of the O2C assets.
"Due to the evolving nature of Reliance's business portfolio, Reliance and Saudi Aramco have mutually determined that it would be beneficial for both parties to re-evaluate the proposed investment in O2C business in light of the changed context. Consequently, the current application with NCLT for segregating the O2C business from RIL is being withdrawn," the statement said.
"The deep engagement over the last two years has given both Reliance and Saudi Aramco a greater understanding of each other, providing a platform for broader areas of cooperation. Saudi Aramco and Reliance are deeply committed to creating a win-win partnership and will make future disclosures as appropriate," it added.
"Saudi Aramco and RIL have a very deep, strong, and mutually beneficial relationship, which has been developed and nurtured by both the companies over the last 25 years. Both are committed to collaborating and working towards strengthening the relationship further in the years ahead," the statement said.