Delhi HC Orders RIL To Disclose Assets Before Sale To Saudi Aramco

Publish Date: 23 Dec, 2019 02:50 PM   |   Arnima  

New Delhi: The Delhi High Court has asked the Reliance Industries Limited to disclose its assets before selling them to Saudi Aramco. The RIL may have to disclose its assets before it can freeze plans to sell its stake in refining and petrochemicals to Saudi Aramco. The RIL has planned to sell it 20 per cent stake in both the businesses to the Saudi Aramco. Along with the RIL the British Gas also has been asked to disclose the assets by the Delhi HC.

According to the HC, "RIL and British Gas have been asked to disclose their assets after the Centre sought to restrain them from disposing of the same." The High Court has ordered the same considering an application filed by the government in which it had sought "curbs citing the failure of the two companies to honour their payment under a $4.5 billion international arbitral award in the Panna-Mukta and Tapti production sharing contracts."

It is to be mentioned that Reliance IndustriesLimited had on August 12 had announced that the company was planning to sell 20 percent of its stake in the refining and petrochemical businesses for $15 Billion to Saudi Aramco. The decision was announced by RIL chairman Mukesh Ambani.

The deal:

  1. The deal is a part of a plan to make RIL a zero-debt company in next 18 months.
  2. The deal values the oil-to-chemicals business at $75 Billion.
  3. The partnership with Saudi Aramco will be a way to insulate RIL from any future oil shocks and volatility in crude prices.

It is to be mentioned that the Saudi Aramco is the most profitable company in the world. It controls the world's second largest proven crude reserves at more than 270 billion barrels.

Government's version:

  1. Worth mentioning that, the government has been fighting an arbitration with Reliance Industries Limited and its partner since 2010.
  2. The Delhi Court has been told by the government that the RIL and its partner company is required to pay $4.5 billion to the government with interest.
  3. The government has stated that it was forced to file for the execution of the award the RIL and Bharat Gas have not cleared their dues.
  4. It has been alleged by the government that the companies have appropriated huge sums of money in violation of production sharing contract in the PMT oil and gas fields.