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Mukesh Ambani’s mega deal: Saudi Aramco to invest Rs 1 lakh crore in RIL joint venture

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RIL AGM Live, Reliance Industries AGM 2019

Reliance Industries AGM Today: Reliance Industries Ltd is set to sign a mega-deal with Saudi oil giant Saudi Aramco buying 20% equity stake in a new joint venture with RIL at an enterprise valuation of $75 billion, Chairman and Managing Director Mukesh Ambani said on Monday. A 20% stake in RIL's new JV at an enterprise valuation of $75 billion translates into roughly over Rs 1 lakh crore. Saudi Aramco will supply oil on long term basis to Reliance Industries, Mukesh Ambani also said at the RIL’s 42nd AGM being held in Mumbai. RIL operates two refineries at Jamnagar with a total capacity of 68.2 million tonnes per annum.

The Saudi Arabian company had confirmed in February earlier this year that it was in active talks with Reliance Industries to invest in petrochemicals and refinery projects in the country. It came after Saudi Crown Prince Mohammed bin Salman visited India in February and then said that he expected investment opportunities worth more than $100 billion over the next two years. Saudi Aramco will supply 500,000 barrels per day or 25 million tonnes per annum, of crude oil to Reliance’s twin refineries at Jamnagar in Gujarat.

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A 50 per cent stake has been taken in a planned $60 billion mega refinery-cum-petrochemical complex in Maharashtra by state-owned oil companies by the Saudi national oil company, along with its partner UAE’s Abu Dabhi National Oil Co (ADNOC).

Meanwhile, the Mukesh Ambani-led firm reported 6.8 per cent year-on-year (YoY) growth in consolidated net profit at Rs 10,104 crore for the first quarter ended June 30, 2019. The consolidated net revenue grew by 22.1 per cent to Rs 172,956 crore in April-June quarter of FY20, as against Rs 141,699 crore in the last quarter.