Reliance Industries Ltd (RIL) announced that it will withdraw its application to obtain the requisite approvals from the National Company Law Tribunal (NCLT) regarding the spinning off of its oil-to-chemicals (O2C) business into an independent entity.

The Indian conglomerate said that the reason for the move is the evolving nature of the oil-to-chemical business.

The application currently in place with NCLT to separate the business from Reliance Industries Ltd has been withdrawn according to the company’s filing to stock exchanges on 19 November.

The Mukesh Ambani-led conglomerate further stated that it had reached a consensus with Arabian oil and gas giant Saudi Aramco that it would be beneficial to both the groups to review the latter’s proposed investment into the O2C business considering the changing circumstances.

Reliance Industries said that the decision to separate the O2C business could have opened the possibility of the sale of a stake in the newly formed company to Saudi Aramco.

The Indian group has stated that it will remain to be Saudi Aramco’s preferred supplier for investments in the Indian private sector. Reliance Industries added that it will partner with Saudi Aramco and its chemical manufacturing subsidiary SABIC for investments in Saudi Arabia.

In 2019, Reliance Industries signed a non-binding letter of intent with Saudi Aramco for the sale of a 20% stake in the O2C business to the latter for $15 billion.

The deal was anticipated to be concluded in March 2020 but was delayed.

  India, Mukesh Ambani, NCLT, Oil and gas industry news, Oil and gas news, Reliance Industries, Reliance Industries Limited, Saudi Arabia, Saudi Aramco