India-based Reliance Industries (RIL) has released a detailed plan carving out its oil-to-chemicals (O2C) business into a wholly-owned subsidiary, which can attract investors.
The latest move comes six months after RIL first announced the proposal as a precursor to a stake sale, Hindustan Times reported.
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According to the plan, RIL’s O2C assets, including its refining, petrochemicals, fuel retail (majority interest only) and wholesale marketing businesses, alongside assets and liabilities, will be transferred to a new unit.
In April, RIL approved a transfer arrangement of its O2C business to Reliance O2C.
The assets’ separation was planned as part of RIL’s target to sell 20% in its refining and chemicals business to Saudi Aramco.
Some of the major assets, such as Reliance Ethane Holding, Reliance Gas Pipelines, Gujarat Chemical Port, Reliance Corporate IT Park, and Reliance Industrial Infrastructure, will not be part of the O2C undertaking.
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By GlobalDataIn a regulatory filing, RIL stated: “RIL has been exploring various opportunities to bring in strategic and other investors in the O2C business. Investors have expressed interest to make an investment in the O2C business.
RIL is one of the biggest petrochemical manufacturers in the world. It operates 1.36 million barrels per day (bpd) refineries at Jamnagar in Gujarat, India.
In July, RIL chairman and managing director Mukesh Ambani said that the group’s plans to sell a 20% stake in its O2C business to Saudi Aramco have been delayed.
In August last year, Saudi Aramco signed a non-binding letter of intent (LoI) to acquire a 20% stake in the O2C division of RIL for $75bn.
