Looking to harness the growth opportunities through strategic partnerships, Reliance Industries has finished the spin-off of its oil-to-chemical business into a new unit which will consist of oil refinery, petrochemical assets and retail fuel business, while excluding oil and gas producing fields.
“Our oil-to-chemicals (O2C) business has formally reorganized its reporting segments to reflect our new strategy and management matrix for this enterprise. The reorganized structure will facilitate holistic and agile decision making and enable us to pursue attractive new opportunities for growth, with strategic partnerships with the best and the biggest in this business globally,” the company said during an investor presentation.
In July 2019, the company stated that the process of spinning out O2C into a separate subsidiary would be completed by early 2021. In 2020, the firm began working on spinning off its O2C business into a separate unit for a possible sale of a 20 per cent stake to Saudi Arabian Oil Co (Aramco).
Reliance’s O2C business includes its oil refining, petrochemical plants and manufacturing assets, as well as bulk and wholesale fuel marketing assets and its 51 per cent interest in retail fuel joint venture with oil major Bharat Petroleum.
The business unit also consists of the Singapore and UK-based oil trading subsidiaries and marketing subsidiary, Reliance Industries Uruguay Petroquimica SA. In addition, Reliance Ethane Pipeline Limited, which operates a pipeline between Dahej in Gujarat and Nagothane in Maharashtra, and Reliance Industries’ 74.9% stake in JV with Sibur also form part of this new unit.