The Saudi Arabian Oil Co. (Saudi Aramco), the world’s largest crude oil producer, said it’s still working on a deal to buy a $15 billion stake in Reliance Industries Ltd’s (RIL) oil-to-chemicals business.
“We are still in discussions with Reliance,” Aramco chief executive officer Amin Nasser said on a call with reporters on Sunday. “The work is still on. We will update our shareholders in due course about the Reliance deal.”
Aramco reported a 50% drop in net income for the six months ended 30 June.
RIL had announced plans to sell a 20% stake in its oil-to-chemicals (O2C) business to Saudi Aramco as part of its deleveraging exercise last fiscal. This July, however, RIL’s chairman and managing director Mukesh Ambani said due to unforeseen circumstances in the energy market, the deal has not progressed as per the original timeline.
In a press statement published on Sunday, Saudi Aramco said its net income plunged to $23.2 billion in the first half of 2020, down by half from $46.9 billion over the same period in 2019.
Aramco reported a 73.4% fall in second-quarter net profit and said it expected capital expenditure for 2020 to be at the lower end of a $25 billion to $30 billion range.
The RIL board had this April approved a scheme of arrangement for transfer of O2C undertaking of the company to Reliance O2C Ltd.
The O2C undertaking of the company comprises of refining, petrochemicals, fuel retail and aviation fuel, and bulk wholesale marketing businesses together with its assets and liabilities.