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Aramco in Reliance deal

Saudi state player to acquire a 20% stake in the Indian giant’s oil to chemicals division

State player Saudi Aramco has signed a deal to acquire a minority stake in the oil to chemicals (O2C) division of Indian giant Reliance Industries.

Under the non-binding letter of intent, Aramco would potentially acquire a 20% stake in the refining, petrochemicals and fuels marketing businesses of Reliance.

A statement from Reliance said the deal is based on a valuation of $75 billion for the entire oil to chemicals division.

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The proposed investment would result in Aramco supplying 500,000 barrels per day of crude oil to the Jamnagar refinery on a long-term basis.

Reliance said its Jamnagar refinery is the largest and most complex refinery in the world, with deep integration of refining and petrochemical activities across multiple manufacturing facilities.

Mukesh Ambani, managing director of Reliance said: “We have a long-standing crude oil relationship with Saudi Aramco and we would be happy to see this further strengthened with this investment.

"Saudi Aramco’s interest is a strong endorsement of the quality of our assets and operations as well as of the potential of India."

The proposed investment is subject to due diligence, and the executed definitive agreement will be subject to regulatory and other customary approvals, Reliance added.

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