Saudi Aramco’s plans to acquire a stake in the downstream arm of India’s Reliance Industries are progressing, with S&P Global Platts reporting that talks are in ‘advanced stages,’ according to anonymous sources.
“Talks are in advanced stages between Reliance and Aramco. They are in the process of finalizing what stake Aramco will be taking in Reliance,” Platts quoted one anonymous source.
This would fit into Saudi Aramco’s wider plans to grow internationally and to bolster its downstream portfolio, most recently highlighted by its acquisition of a 70% stake in Saudi chemicals giant SABIC.
“Investments in petrochemicals represent a hedge against the long term ‘peak oil demand’ scenario,” Fitch Ratings noted in a report following the SABIC acquisition announcement. “Companies that have lower production costs and are more integrated into petrochemicals would be better positioned to withstand ensuing declining demand.”
“Our downstream business ventures will provide a reliable destination for Saudi Aramco’s future oil production, and diversify both the company’s business portfolio and the kingdom’s economy,” Nasser said at the GPCA Forum in November 2018.
READ: Inside Aramco: How the oil titan is transforming to thrive in an economically diverse Saudi Arabia
