Reliance Industries (RIL) fell 2.07% to Rs 1566.35 on reports the government has sought to block RIL selling a 20% stake in its oil and chemical business to Saudi Aramco.
In August, RIL announced its plans to sell 20% stake in its refining and petrochemicals business for $15 billion to Saudi Aramco. The deal, which values the oil-to-chemicals (O2C) business at $75 billion, is part of a plan to make RIL a zero-debt company in the next 18 months.According to the report, the government filed petition in the Delhi High Court (HC) seeking to block RIL's deal with Saudi Aramco, in view of dues of $3.5 billion in the Panna-Mukta and Tapti (PMT) oil and gas fields.
The Delhi High Court on Friday (20 December) reportedly asked RIL and British Gas to disclose their assets after the Centre sought to restrain them from disposing of the same. The government, since 2010, has been fighting an arbitration with RIL and its partner, alleging that the companies appropriated huge sums of money in violation of the production sharing contract in the PMT oil and gas fields.
RIL reportedly said it has no immediate liability in the dispute with the state over profits from PMT fields because the arbitration tribunal has not ordered any payment so far. It claimed authorities have exaggerated the sum by ignoring the latest legal order that reduces the government's claim "very significantly." Further, the liability, if any, will be shared by partners in the fields, in which RIL held a 30% interest, the company reportedly said.
On Friday (20 December), RIL said that after 25 years of operating the PMT oil and gas fields, the Panna-Mukta and Tapti (PMT) joint venture partners will be handing over the Panna-Mukta oil and gas fields back to the Government of India's nominee i.e. ONGC on 21 December 2019.
The PMT JV constituents include Oil & Natural Gas Corporation (ONGC), Reliance Industries (RIL) and BG Exploration & Production India (BGEPIL), each holding 40%, 30% and 30% participating interest respectively. The Production Sharing Contracts (PSC) for the Panna-Mukta and Tapti fields, which were executed by the PMT JV with the Government of India in 1994, will expire on 21 December 2019.
RIL's consolidated net profit soared 18.3% to Rs 11,262 crore on 3.6% rise in net sales to Rs 1,48,526 crore in Q2 September 2019 over Q2 September 2018.
RIL is engaged in refining, including manufacturing of refined petroleum products, and petrochemicals, including manufacturing of basic chemicals, fertilizers and nitrogen compounds, plastic and synthetic rubber in primary forms.
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