Aramco to Buy a 20% Stake in Reliance
In a historic deal, the world’s largest manufacturer of oil Aramco has invested Rs 5.32 lakh crore in Reliance ltd.
Aramco is the world's biggest crude oil producing company. What is crude oil? It is naturally occurring, unrefined petroleum. After it is refined, it can be used to make gasoline, diesel and various forms of petrol. The company was looking to expand and find new places to sell oil. India is the perfect place as we are the third-largest consumer of crude oil in the world.For a long time Saudi Arabia Company Aramco and Reliance Industries Ltd were thinking of making a deal. Finally this has happened. At Reliance’s 42th annual general meeting on Monday, Chairman Mukesh Ambani announced that Aramco will buy a 20% stake (shares) in the Reliance’s oil refinery and chemical business.
Aramco will pay around Rs 5.32 lakh crore for this. This is the biggest investment by any foreign company in India. As part of the deal, Saudi Aramco will supply 500,000 barrels of crude oil per day or 250 kg per annum, of crude oil to RIL's two oil refineries at Jamnagar in Gujarat. This is the world’s biggest oil refinery. It creates 68.2 million tonnes of oil per year. This deal has many benefits for Reliance. It will help Reliance reduce its loan which has increased a lot in the last few years.