Adani looking at potential partnerships with Aramco

Adani looking at potential partnerships with Aramco

According to news reports, Indian conglomerate Adani Group is pursuing potential partnerships in Saudi Arabia, for a range of potential cooperation and joint investment opportunities with Saudi Aramco and the country’s Public Investment Fund. Furthermore, it is said to be exploring the part purchase of PIF’s stake in Aramco.

It is speculated that the Indian firm could team up with Aramco or subsidiaries like Sabic in areas such as renewable energy, crop nutrients or chemicals.

Adani may also offer PIF, which is Saudi Arabia’s sovereign wealth fund, the opportunity to invest in infrastructure in India. Deliberations are at an early stage, and Adani hasn’t made a decision on which form any potential cooperation could take, said reports.

A deal could help Aramco deepen relationships in one of the world’s fastest-growing energy consumers. The Saudi petroleum giant spent more than two years negotiating a potential US$15 billion investment in the oil-to-chemicals unit of Indian billionaire Mukesh Ambani’s Reliance Industries Ltd., only for talks to be scrapped in November last year. Aramco said at the time it would continue to look at investing in India.

Recently, the Saudi government transferred a 4% stake to PIF, which has also kicked off discussions about how to monetise that holding as it seeks to raise funds for its ambitious investment goals, Bloomberg has reported.

Early in the year, Adani signed a deal with South Korea’s Posco to explore business opportunities in India. The agreement includes the setting up a green steel mill in Gujarat, with a potential investment of as much as US$5 billion over the coming years.

PIF has also since done several deals in India, buying stakes in Reliance’s retail business, wireless arm and fibre-optic network assets. The Indian conglomerate has also appointed Yasir Al-Rumayyan, who’s chairman of Aramco and governor of the PIF, to its board.