Saudi Aramco has struck a $15 billion deal with Asia's richest man for a stake in the world's biggest refinery
- Saudi Aramco has agreed to acquire a 20% stake in Reliance Industries' refining and petrochemicals business, which is valued at $75 billion.
- The $15 billion deal between the world's largest oil producer and Asia's richest man, Reliance chairman and largest shareholder Mukesh Ambani, gives the Saudi Arabian company a stake in the world's biggest refinery.
- Reliance will purchase 500,000 barrels of crude oil a day from Saudi Aramco as part of the deal.
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Saudi Aramco has agreed to acquire a 20% stake in Reliance Industries' refining and petrochemicals business, which is valued at $75 billion.
The $15 billion deal between the world's largest oil producer and Mukesh Ambani - Asia's richest man as well as Reliance's chairman and largest shareholder - gives it a stake in the Jamnagar Refinery in India, which can process an unmatched 1.2 million barrels of crude oil per day.
The Saudi Arabian oil titan has been investing heavily in refineries as it looks to double its daily processing capacity to as much as 10 million barrels of crude oil by 2030, according to Bloomberg. Meanwhile, Reliance has been seeking to sell off large parts of its assets, which include cell-phone towers and gas fields, to lower its debt - estimated at $32 billion by Bloomberg.
Saudi Aramco's profits slumped 12% to just under $47 billion in the first half of this year, according to its earnings release.
"I am truly delighted to welcome Saudi Aramco, one of the largest business enterprises in the world, as a potential investor in our Oil to Chemicals division," Ambani said in a statement. "We have a long-standing crude oil relationship with Saudi Aramco and we would be happy to see this further strengthened with this investment."
Reliance has agreed to purchase 500,000 barrels of crude oil a day from Saudi Aramco as part of the deal, Ambani said.
"Saudi Aramco's interest is a strong endorsement of the quality of our assets and operations as well as of the potential of India," he added.