Like NNPC with Dangote Refinery, Aramco in deal to acquire stake in Reliance Industries in Saudi Arabia

Saudi Aramco is in advanced talks for an all-stock deal to acquire a stake in Reliance Industries Limited’s oil refining and chemicals business, people with knowledge of the matter told Bloomberg.

The Saudi Arabian firm is discussing the purchase of a roughly 20 per cent stake in the Reliance unit for about $20 billion to $25 billion-worth of Aramco shares, the people said, asking not to be identified because the information is private.

The announcement comes about two weeks after the Federal Executive Council (FEC) approved the acquisition of 20 per cent minority stakes by the Nigerian National Petroleum Corporation (NNPC) in upcoming Dangote Petroleum and Petro-Chemical Refinery.

Dangote Petroleum Refinery is a 650,000 barrels per day (BPD) integrated refinery project under construction in the Lekki Free Zone near Lagos, Nigeria. It is expected to be Africa’s biggest oil refinery and the world’s biggest single-train facility.

The Pipeline Infrastructure at the Dangote Petroleum Refinery is the largest anywhere in the world, with 1,100 kilometers to handle 3 Billion Standard Cubic Foot of gas per day. The Refinery alone has a 400MW Power Plant that is able to meet the total power requirement of Ibadan DisCo.

The Refinery will meet 100 per cent of the Nigerian requirement of all refined products and also have a surplus of each of these products for export.

It is designed to process Nigerian crude with the ability to also process other crudes.

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