The oil-to-chemical (O2C) industrial unit maintains Reliance’s oil distilling and petrochemical assets and retail fuel industry but not upstream oil and gas production areas such as KG-D6 and the textile industry.
Trust for the first time reported unified earnings of the O2C business in its third quarter financial results. Previously, separate refining and petrochemical industries were reported while revenue from fuel sales was part of the company’s overall sales business.
The October-December 2020 employment statement described petrochemical employment and refining as well as earnings from fuel stores. As a result, it did not provide refinancing margins – the most sought-after number to evaluate the company’s oil refining industry.
“The reorganization of refining and petrochemicals such as oil-to-chemicals (O2C) represents a new strategy as well as a regulatory matrix,” the company said in a hired investor presentation.
This, he said, will “enable holistic and energetic decision-making” as well as “seeking attractive growth opportunities with strategic partnerships”.
Trust began work on bringing the O2C business into a separate unit last year for the sale of potential bets to companies such as Saudi Aramco.
It values the O2C business at 75 billion USD and has been in talks with Saudi Arabian Oil Co. (Aramco) to sell a 20 percent interest.
The company, however, did not comment on talks with Aramco, which is said to have hit a valuation roadmap.
The reorganization would “direct the move further downstream and closer to customers” and “provide sustainable and affordable energy and materials solutions to meet the growing needs of the India, “the company said in the presentation.
Reliance O2C Limited has oil and petrochemical plant refining and manufacturing assets, wholesale and retail fuel marketing, and Reliance has a 51 per cent interest in a joint fuel retail venture with UK BP.
The O2C unit is also home to Singapore and UK-based oil trading subsidiaries and marketing subsidiary Reliance Industries Uruguay Petroquimica SA.
It is also home to Reliance Ethane Pipeline Limited which operates a pipeline between Dahej in Gujarat and Nagothane in Maharashtra as well as a 74.9 per cent stake that Reliance holds in the joint venture with Sibur.
It would not have very large ethane carriers, gas pipelines as one that transports coal bed methane from its CBM blocks, the oil and gas investment property company Reliance Industries (Middle East) DMCC, and assets domestic inspection and production as part of the O2C unit.
Also, Reliance’s clothing business as it ran out of the Naroda site, Baroda city and land, including cricket stadium, Jamnagar power fund, and Sikka Ports and Terminals Limited would also not be part of the O2C unit.
Ambani had announced in July 2019 that the O2C spinning process into a separate subgroup would be completed in early 2021.
Jamnagar in Gujarat, with a combined capacity of 68.2 million tons per year, is owned and owned by twin oil refineries.
It is also the largest petrochemical manufacturer in the country with units at Jamnagar, Dahej, Hazira, Nagothane, Vadodara, Patalganga, Silvassa, Barabanki, and Hoshiarpur.
The company holds a share of 66.6 percent in the KG-D6 blockchain where they are investing around 5 billion USD in developing a second set of gas detection together with BP.
He also has the same interest in the NEC-25 block in the Bay of Bengal and operates two CBM blocks in Madhya Pradesh. The above funds are not part of the O2C unit.
“The trust of O2C (is) is one of the most integrated manufacturers of fuels, chemicals and value-added products,” the show said. “O2C to maximize flow, reduce transport fuel and create clean and green energy platforms.” PTI ANZ MKJ