• 5 minutes 'No - Deal Brexit' vs 'Operation Fear' Globalist Pushback ... Impact to World Economies and Oil
  • 8 minutes China has *Already* Lost the Trade War. Meantime, the U.S. Might Sanction China’s Largest Oil Company
  • 12 minutes Will Uncle Sam Step Up and Cut Production
  • 1 hour China has invested btw $30 - $40 Billon in Canadian Oil Sands. Trump should put 10% tariffs on all Chinese oil exported into or thru U.S. in which Chinese companies have invested .
  • 7 hours It's Not the Job of the Government to Dictate Where Businesses Should Go
  • 43 mins US Shale Economic Impact: GDP gain realized in shale boom’s first 10 years
  • 7 hours Offshore subsea sub 50$/bbl : Rystad Energy: High stakes in store for subsea markets if oil falls to $50/bbl
  • 5 hours Tit For Tat: China Strikes Back In Trade Dispute With U.S. With New Tariffs
  • 4 hours Philadelphia Energy Solutions seeks to permanently shut oil refinery - sources
  • 32 mins Recession Jitters Are Rising. Is There Reason To Worry?
  • 41 mins Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 1 hour Iran Is Winning Big In The Middle East
  • 1 day Trump vs. Xi Trade Battle, Running Commentary from Conservative Tree House
  • 1 day Strong, the Strongest: Audi To Join Mercedes, BMW Development Alliance
  • 38 mins TRUMP'S FORMER 'CHRISTIAN LIAISON' SAYS DEEPWATER HORIZON DISASTER WAS GOD'S PUNISHMENT FOR OBAMA ISRAEL DIVISION
  • 5 mins Danish Royal Palace ‘Surprised’ By Trump Canceling Trip

Saudi Plan To Get Stake In India’s Largest Company Hits A Snag

Aramco

Discussions between India’s largest company, Reliance Industries, and Aramco, the world’s single biggest oil producing firm, have hit a stumbling block as the Indians want higher valuation than the Saudis are willing to pay for a stake in Reliance’s downstream business, Reuters reported on Tuesday, quoting two people with knowledge of the issue.

In April this year, reports emerged that Saudi Arabia’s oil giant Aramco was in “serious discussions” to buy up to 25 percent of the refining and petrochemicals businesses of India’s largest company, Reliance Industries.

Aramco first showed interest in Reliance’s downstream business months ago, but discussions sped up after Saudi Crown Prince Mohammed bin Salman visited India in February, according to The Times of India

The two sides could reach an agreement on the value of a possible deal around June, the Indian outlet’s sources said. A stake of 25 percent could fetch around US$10 billion-US$15 billion for Reliance, which would value the Indian company’s total refining and petrochemicals business at some US$55 billion-US$60 billion.

According to Reuters’ sources, however, Reliance is asking for a higher price and it also wants to transfer debt of the holding group to the new special purpose vehicle (SPV) of refining, chemicals, and marketing, in which Reliance is reportedly offering Aramco at least a 20-percent stake.

Related: Morgan Stanley: Why Tanker Wars Aren’t Causing An Oil Price Spike

In recent years, Saudi Arabia has been pursuing downstream deals in Asia—the most prized market for oil exporting nations, aiming to lock in future demand for Saudi crude oil. India, for its part, is a fast-growing demand center and the world’s third-largest oil consumer after the U.S. and China.

Aramco, together with the Abu Dhabi National Oil Company (ADNOC), is also partnering with Indian state oil firms to build a giant US$44-billion refinery in India, which has faced roadblocks and delays. Construction on the giant refinery has not started yet.

Last month, the Indian state of Maharashtra identified a new location for the refinery after the process of land acquisition at the previous site was put on hold late last year due to strong opposition from local farmers. Farmers had opposed the choice of site for the giant refinery because many of them depend on their land for their income and livelihoods.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play