Saudi Aramco is reportedly in advanced talks to acquire a stake in India’s Reliance Industries’ (RIL) oil-to-chemicals business in an all-stock deal.

Citing people familiar with the development, Bloomberg said that Aramco is considering buying a 20% stake in Reliance unit. This could be valued between $20bn to $25bn in Aramco’s shares.

A deal between the two firms could be signed as soon as the coming weeks, the people said.

In 2019, Reliance announced the sale of a 20% stake in its oil-to-chemicals business for $15bn to Aramco.

However, the deal was stalled due to the drop in oil prices and demand following the outbreak of the Covid-19 pandemic.

Reliance expects the transaction to ensure a steady supply of crude oil for its refineries.

If the deal materialises, Reliance will hold around a 1% stake in Aramco, based on the world’s biggest energy company’s $1.9tn market valuation, reported the news agency.

The sale is expected to help the Indian firm in more than doubling its refining capacity to between eight million and ten million barrels of crude a day, reported Bloomberg.

Last week, Aramco said it was undertaking due diligence on the deal, with plans to complete this year.

In April 2021, Saudi Arabian Crown Prince Mohammed bin Salman said that the country was in talks to divest a stake of 1% in Aramco to an undisclosed ‘leading global energy company’.

Salman added: “This deal could be very important in strengthening Aramco’s sales in the country where this company resides.”