Saudi Aramco to buy Reliance oil refining stake for US$15B

  • Saudi Aramco to buy Reliance oil refining stake for US$15B

Saudi Aramco to buy Reliance oil refining stake for US$15B

At the 42nd Reliance AGM event major focus was on Jio Fibre services but another interesting service that was unveiled by Mukesh Ambani, Chairman Reliance Industries Limited was Jio Postpaid plan which will be launched on September 5th.

Saudi Arabia announced plans for an IPO of Aramco three years ago, but the sale was delayed to allow the company to acquire chemicals giant Saudi Basic Industries Corp.

The average selling price for Aramco's crude fell to $66 a barrel in the first half from $69 a year earlier, while crude production held steady at 10 million barrels of oil equivalent a day. In fact, half a billion customers is well within Jio's reach, Ambani added. It will also stream TV channels.

JioFiber plans will start from Rs 700 per month and will offer a host of smart services through the Jio set-top box.

The Jio Home Phone connection comes along with the broadband service and will offer free local calls.

Jio's also making global calling cheaper by setting the default tariffs to one tenth of the industry average and, for United States and Canada exclusively, users can purchase unlimited calling at ₹500.

According to the company's latest shareholder communication, Reliance Retail and Jio are said to have collectively contributed almost 32% to the consolidated EBITDA of the Indian conglomerate, which is up from the 2% figure, five years ago. There was speculation about Aramco buying a 20 per cent stake in the business for about $15 billion, but Khalid Al-Dabbagh, Aramco's chief financial officer, declined to confirm those figures and said the talks with Reliance were at "an early stage". The Reliance CMD also confirmed that the company is testing the service with 5 lakh homes already - making it the largest beta testing program in the world for a home internet service.

If you're still looking for more reasons to be excited about Jio Giber, Reliance also announced the Jio Fiber Welcome Offer, wherein subscribers opting for the annual "Jio Forever" plans will get an HD/4K TV and a 4K set-top box for free. Which ones? Well, we don't know yet. Premium Jio Fiber customers will also be able to launch movies on the same day they are released in theatres, Ambani said - a unique service referred to as Jio First Day First Show. This service won't be available immediately but Ambani stated that it should be live by mid-2020.

Jio Postpaid Plus is available for those who want a platinum-grade service and product experience. The box will also offer access to popular over-the-top media services (OTT) platforms and accepts broadcast signals from local cable operators. "Now, we have transformed our long-standing relationship of two decades into a partnership [that has] growth potential, for many more years". The users who will pay the annual package fee in advance will get the free TV from Jio. It also announced a planned investment in the petrochemicals and refining business of the Indian comglomerate Reliance Industries. This will be made available from June 2020.