Aramco-Reliance deal gets Saudi top spot as oil exporter |
Aramco, the Saudi Arabian Oil Company, which will be buying a 20 per cent stake in Reliance Industries` oil-to-chemical business, will help Saudi Arabia regain the position of being the biggest supplier of oil to the world`s fastest-growing oil market. Saudi Arabia, which traditionally has been India`s top oil source, lost the slot to Iraq during the last two financial years. RIL`s oil-to-chemical business, has an enterprise valuation of $75 billion and it will be accompanied with a deal to supply 500,000 barrels per day or 25 million tonne a year of crude oil. According to data sourced from the Directorate General of Commercial Intelligence and Statistics, Saudi Arabia in 2018-19 fiscal exported 40.33 million tonne of crude oil to India, over 15 percent short of 46.61 million tonne sold by Iraq. Additional oil supplies following the Reliance deal will catapult Saudi Arabia to the top spot again. The terms of the Reliance-Aramco deal are yet to be finalised, but Reliance, going by the enterprise value announced by its chairman Mukesh Ambani on Monday, will get roughly 15 billion dollars, including some debt adjustments, for the 20 per cent stake when the sale closes later this year.
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