With Reliance Industries Ltd. set to finalize its strategic alliance with Saudi Aramco later this year, the Indian conglomerate decided to appoint Aramco chairman Yasir Al-Rumayyan to its board. Al-Rumayyan, who also serves as the governor of the kingdom’s sovereign wealth fund, will operate as the independent director of Reliance.
Chairman Mukesh Ambani stated at Reliance’s general meeting late last week that he warmly welcomes Al-Rumayyan on board and eagerly awaits the partnership between Reliance and the world’s biggest oil producer to be finalized during the later stages of 2021.
Prior to seeking this investment deal, Reliance agreed to sell a 20% stake in its oil-to-chemicals business to Saudi Aramco, but the deal was delayed because of a pandemic-induced decline in the demand for energy. The deal, worth $15 billion, was expected to be penned in March of 2020.
With many nations officially on route to largescale economic recoveries since the start of the pandemic, oil prices have largely rebounded, thus refueling the demand for largescale oil deals.
Oil-to-chemical is the primary business of Reliance, forming approximately 60% of the energy, petrochemicals, and textiles conglomerate’s revenue for the year through March.
