Saudi Aramco deal hasn't progressed as per original timeline: Mukesh Ambani

At RIL's last AGM in August 2019, Ambani announced plan to sell a stake in company's O2C business to Aramco. On August 12, it said it has signed LoI with Aramco for 20% stake sale

Reliance Industries (RIL)'s deal to sell a stake in its oil-to-chemicals (O2C) division to Saudi Aramco has not progressed as per its original timeline, said Mukesh Ambani, chairman and managing director for RIL, at the company's annual general meeting on Wednesday.

"Due to unforeseen circumstances in the energy market and the Covid-19 situation, the deal has not progressed as per the original timeline. Our equity requirements have already been met," Ambani said in his AGM address. He added," Nevertheless, we at Reliance value our over two-decade-long relationship with Saudi Aramco and are committed to a long-term partnership."

At the company's last AGM in August 2019, Ambani announced the plan to sell a stake in the company's O2C's business to Saudi Aramco. On August 12, the company said it has signed a letter of intent with Saudi Aramco for a proposed investment in the division for a 20 per cent stake. The deal was expected to bring funds worth $15 billion for the company's debt-reduction plan back then. During the past four months, RIL has met its requirements with stake sales in Jio Platforms and a rights issue instead.

Ambani added the company has been approached by global companies for strategic partnerships in its petrochemical business, including in utilising these feedstocks. “These potential partnerships will help us build competitive manufacturing capacity at our existing sites to serve the deficit Indian market that still depends on large-scale imports of chemicals,” he said.

The billionaire has also set a target to turn the company net-carbon zero by 2035. “The company is evaluating novel catalytic and electrochemical transformations to use CO2 as a valuable feedstock. Reliance has proprietary technology to convert transportation fuels to valuable petrochemical and material building blocks,” he said. Ambani further added, “We will build an optimal mix of reliable, clean and affordable energy with hydrogen, wind, solar, fuel cells and battery. On successful implementation of this strategy, we target to become net carbon-zero by 2035."

Ambani added the company has a 15-year vision to build Reliance as one of the world’s leading new energy and new materials company." It will be a platform company which will execute our vision in a worldwide collaborative model. This model envisages a large coalition of global financial investors, reputed technology partners, and start-ups working on futuristic solutions," Ambani said.