India’s largest conglomerate Reliance Industries Ltd has released details related to carving out its oil-to-chemicals business into a separate entity, after it first announced the proposal as a precursor for a potential stake sale to Saudi Aramco early this year. The plan includes transferring its entire oil-to-chemicals assets, including refining, petrochemicals, fuel retail (majority interest only) and bulk wholesale marketing businesses, along with its assets and liabilities, to a new unit.
In April, Reliance approved an arrangement for transfer of its oil-to-chemicals (O2C) business to Reliance O2C Ltd as a going concern on slump sale basis.
The separation of the assets was planned as part of Reliance’s target to sell 20% in its refining and chemicals business to oil giant Saudi Aramco, which has been delayed. However, Aramco says it is still working on the US$15 billion stake purchase plan.
Its assets such as Reliance Ethane Holding Pte Ltd, Reliance Gas Pipelines Ltd, Gujarat Chemical Port Ltd, Reliance Corporate IT Park Ltd, Reliance Industrial Infrastructure Ltd, among others, will not be part of the oil to chemicals undertaking.
Reliance has also said it has been exploring options to bring in strategic investors in the O2C business.