38.6c New Delhi, India, Sunday, April 21, 2024

Aramco confirms of working on investment deal worth $15 bn with RIL

By Shreedhara Purohit      13 August, 2020 09:09 PM      0 Comments
Aramco confirms of working on investment deal worth $15 bn with RIL

The Saudi Arabian Oil Co.’s chief executive officer Amin Nasser told that they are still discussing their deal with reliance industries and mentioned that they will update their shareholders in due course of time.

Reliance Industries had announced to sell a 20% stake in its oil to chemicals business to Saudi Aramco. This deal would have helped the company to become one of the top oil refiners and chemical makers.

But due to unforeseen circumstances in the energy market and the COVID-19 pandemic there has been a slowdown in businesses and a reduced demand for crude oil and petroleum products.

However, at the RIL’s annual general meeting, which was held virtually on 15 July, CEO Mukesh Ambani said that they value their two-decade-long relationship with Saudi Aramco and will complete the process by early 2021.

Nevertheless, we at Reliance value our over two-decade-long relationship with Saudi Aramco and are committed to a long-term partnership," Ambani had said.

Saudi Aramco on August 8 announced that its second-quarter net profit dived due to a sharp drop in oil prices as the COVID-19 pandemic hampered global demand.

"Strong headwinds from reduced demand and lower oil prices are reflected in our second-quarter results," the CEO said.

Aramco reported a 50% drop in net income for the six months ended 30 June. Reduced oil demands and low prices have been major reasons for this drastic fall. Another major reason for the slowdown of the deal is that reliance has now met with its equity requirements and its need for cash infusion has eased. Henceforth, Ambani does not have an urgency to receive funds from Saudi Aramco. Reliance’s shares have risen nearly to 150% due to investments from Google and Facebook.

Saudi Aramco which is the world’s largest crude oil producer has reported a drop of 50% in net income and a 73.4% fall in second-quarter net profit. Aramco is now working to start a 400,000 barrel-a-day refinery on the red seacoast this year. The company even has plants in the U.S.A, Japan, and South Korea.

Share this article:

Leave a feedback about this

Trending Judiciary
SC orders medical examination of 14-yr-old rape survivor seeking to terminate her 28-week pregnancy

Supreme Court orders medical examination of 14-year-old rape survivor seeking termination of 28-week pregnancy. Decision to be made after evaluating impact on her health.

20 April, 2024 11:00 AM


Trending Legal Insiders
Need to safeguard judiciary from unwarranted pressures: 21 ex-judges write letter to CJI

21 ex-judges write to CJI Chandrachud urging protection of judiciary from pressures undermining its integrity and autonomy.

15 April, 2024 12:17 PM
Trending Judiciary
SC notice to ED; declines early date on plea by Delhi CM Arvind Kejriwal against arrest

SC issues notice to ED, declines early hearing on Delhi CM Kejriwal's plea against arrest in liquor scam.

15 April, 2024 03:08 PM
Trending Law School
Call For Chapters: Gender-Based Violence and Religion

Calling For Book Chapters: As an editor, Dr. Amit Anand, Assistant Professor, School of Legal Studies, REVA University, Bengaluru, is inviting people to contribute to a book, entitled "Gender-Based Violence and Religion." This book is scheduled to be published by Cambridge Scholars Publishing.

15 April, 2024 04:21 PM
Trending Top Stories
Cannot stop any public rally, Bombay HC on allegation that Ram Navami processions deliberately pass through Muslim-majority areas

The Bombay High Court calls upon the Maharashtra Police to ensure that no law and order issues occur during a Ram Navami rally in a Muslim-majority area in Mumbai.

15 April, 2024 06:36 PM


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email