India’s Reliance and ADNOC join forces in chemical project

Indian refining giant Reliance Industries has signed an agreement with Abu Dhabi National Oil Co (ADNOC) to build a multi-billion-dollar chemical project in Ruwais, marking the group’s first investment in a greenfield overseas project.

Reliance, which operates the the world’s biggest refining complex at Jamnagar in western India, is becoming more international in its focus. Previously, it has bought stakes in some overseas explorations and manufacturing assets.

“This is a significant step in globalising Reliance’s operations, and we are proud to partner with ADNOC in this important project for the region,” Mukesh Ambani, the chairman of Indian oil-to-telcom conglomerate, said in the statement.

Asia’s richest man Ambani last week announced the appointment of Saudi Aramco chairman Yasir Al-Rumayyan as a director in Reliance’s board and said this is the “beginning of the internationalisation of Reliance”. The group hopes to formalise a deal to sell 20% stake to Aramco in its oil-to-chemical business.

In a joint statement, Relaince and ADNOC said they expected final investment decisions for the projects and awards of related engineering contracts to be taken in 2022.

A source familiar with the matter said the project could cost $2.1 billion.