Saudi Aramco has invested $15 billion in the Reliance Oil Refinery for a 20% stake in the company.
Saudi Aramco on Monday said it agreed to acquire a 20% stake in Reliance Industries’ refining and petrochemicals business, valued at $75 billion.
The $15 billion deal between the world’s largest oil producer and Mukesh Ambani, Asia’s richest man as well as Reliance’s chairman and largest shareholder, gives it a stake in the Jamnagar Refinery in India, which can process an unmatched 1.2 million barrels of crude oil per day. (source)
What was the need at this time for Mukesh Ambani to part 20% equity stake in Reliance Industries crowning jewel? Given the tensions between India and Pakistan and the ways Pakistan behaves, it is imperative that Ambanis insured their business against any aggression from Pakistan. Now, with Saudi interest in Reliance’s Jamnagar plant, Pakistan or its terrorists cannot really do anything there. Listen to a very informative discussion on this deal and its geopolitical ramifications.