New Delhi, first published Nov 20, 2021, 10:49 AM IST
Following its recent foray into the new energy sector, Reliance Industries Ltd announced the abandonment of its application to the National Company Law Tribunal for the separation of its petroleum and chemical activities. In a statement on Friday, the Indian company also announced the resumption of its proposed $ 15 billion deal to sell a 20% stake in its oil refinery and petrochemical division to Saudi Aramco. Following Reliance’s entry into the new energy market, the two companies decided to reassess the proposed investment.
Talks about selling shares, originally announced in August 2019, have been revived in light of Reliance’s recent ventures into the new energy sector, including a $ 10 billion investment in alternative energy in three. year. To switch to green energy, it has already bought a German manufacturer of photovoltaic solar panels and made an agreement with a Danish company to produce hydrogen electrolyzers in India.
According to the company statement, due to the changing nature of Reliance’s business portfolio, Reliance and Saudi Aramco agreed that it would be beneficial for both parties to re-evaluate the proposed investment in the O2C sector in light of the changed environment. According to a press release issued on Friday, the company signed a “non-binding letter of intent in August 2019 for a potential acquisition of 20% of the shares by Saudi Aramco in Reliance’s O2C business.”
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Reliance has announced plans for new energy and materials industries, including the construction of the Giga Dhirubhai Ambani Green Energy complex in Jamnagar. According to the company, it will be one of the largest integrated renewable energy production complexes in the world. The Jamnagar complex will include an integrated photovoltaic solar module plant for solar power generation, an advanced energy storage battery plant for intermittent energy storage, an electrolyzer plant for the production of green hydrogen and a fuel cell plant to convert hydrogen into motive and stationary energy.
This represents a significant portion of O2C assets and is intended to serve as a hub for new renewable energy and new materials businesses from Reliance. In response to the withdrawal of the NCLT application, Reliance asserted that its relationship with Saudi Aramco is “deep and mutually beneficial” and that the two companies are “very dedicated to forging a win-win cooperation”.
Last updated on November 20, 2021, 10:49 AM IST