Reliance Industries to delay planned stake sale to Saudi Aramco

India-based Reliance Industries’ (RIL) chairman and managing director Mukesh Ambani has said that the group’s plans to sell a 20% stake in its oil-to-chemical business to Saudi Aramco have been delayed.

The Economic Times reported that Ambani did not reveal if the deal was on track or provide a new timeline for its completion.

Last year, RIL announced a $15bn deal with the world’s biggest oil exporter, Saudi Aramco, as part of the Indian company’s efforts to reduce its debts.

The Aramco deal was originally scheduled for completion in March this year.

Reuters quoted Mukesh Ambani as stating: “Due to unforeseen circumstances in the energy market and the Covid-19 situation, the deal (with Saudi Aramco) has not progressed as per the original timeline.

“Our equity requirements have already been met. Nevertheless, we at Reliance value our over two-decade long relationship with Saudi Aramco and are committed to a long-term partnership.”

The Indian group recently secured investment from a string of technology majors, including Facebook, Intel and Qualcomm, for its digital platform Reliance Jio.

RIL is one of the biggest petrochemical manufacturers in the world. It operates 1.36 million barrels per day (bpd) refineries at Jamnagar in Gujarat, India.

Last week, global energy major BP and RIL announced the start of their fuel retailing joint venture.

In May this year, RIL reported a 39% drop in its first quarter profits due to the fall in oil prices and weak demand caused by the Covid-19 pandemic.