Reliance Industries to hive off oil-to-chemical enterprise


New Delhi, September 8

Reliance Industries Ltd’s new oil-to-chemical enterprise unit will maintain its oil refinery and petrochemical belongings and retail gasoline enterprise however not upstream oil and fuel producing fields akin to KG-D6 and textiles enterprise, the agency mentioned detailing hiving-off plans.

RIL has began work on hiving off the oil-to-chemical (O2C) enterprise right into a separate unit for a attainable stake sale to firms akin to Saudi Aramco.

Reliance O2C Ltd will home oil refining and petrochemical crops and manufacturing belongings, bulk and wholesale gasoline advertising, and RIL’s 51% curiosity in retail gasoline three way partnership with BP of the UK, in keeping with the Scheme of Arrangement.

The O2C unit would additionally home RIL’s Singapore and the UK-based oil buying and selling subsidiaries and advertising subsidiary, Reliance Industries Uruguay Petroquimica SA.

It would additionally home Reliance Ethane Pipeline Ltd that operates a pipeline between Dahej in Gujarat and Nagothane in Maharashtra in addition to 74.9% stake that RIL holds within the three way partnership with Sibur.

RIL’s very massive ethane carriers, fuel pipelines akin to one which transports coal-bed methane from its CBM blocks, abroad oil and fuel asset holding firm Reliance Industries (Middle East) DMCC, and home exploration and manufacturing belongings wouldn’t type a part of the O2C unit, it mentioned.

Also, RIL’s textiles enterprise as operated out of the Naroda website, Baroda township and land, together with cricket stadium, Jamnagar energy belongings, and Sikka Ports and Terminals Ltd would additionally not be a part of the O2C unit.

RIL values the O2C enterprise at $75 billion and has been in talks with Saudi Arabian Oil Co (Aramco) on the market of a 20% curiosity.

“The nature of risk and returns involved in the O2C business are distinct from those of the other businesses of RIL and the O2C business attracts a distinct set of investors and strategic partners,” it mentioned. — PTI

Scheme of Arrangement

  • The firm’s new oil-to-chemical enterprise unit will maintain its oil refinery and petrochemical belongings and retail gasoline enterprise however not upstream oil and fuel producing fields akin to KG-D6 and textiles enterprise
  • The O2C unit would additionally home RIL’s Singapore and the UK-based oil buying and selling subsidiaries and advertising subsidiary, Reliance Industries Uruguay Petroquimica SA
  • The firm values the O2C enterprise at $75 billion and has been in talks with Saudi Arabian Oil Co (Aramco) on the market of a 20% curiosity

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