<article><p><i>Corrects valuation of BP's fuel retail stake in fifth paragraph</i></p><p class="lead">Indian private-sector conglomerate Reliance Industries (RIL) has started the process of spinning off its oil and petrochemical operations, as a step towards attracting outside investment.</p><p>The new oil-to-chemicals (O2C) business will comprise RIL's 1.4mn b/d refinery complex at Jamnagar on India's west coast and 38.4mn t/yr of petrochemical production capacity, the company said today as it gave more details of a roadmap that was first <a href="https://direct.argusmedia.com/newsandanalysis/article/2139312">announced</a> last year. </p><p>RIL said it will maintain management control of the O2C business following the spin-off but has not indicated what size stake it is looking to sell. </p><p>State-controlled Saudi Aramco <a href="https://direct.argusmedia.com/newsandanalysis/article/1956932">expressed interest</a> in buying a 20pc stake in the O2C operations in 2019, but no deal has been reached. Talks are continuing, RIL said today, although it is unclear if the 20pc figure still applies. The stake was valued initially at $15bn in August 2019 on the basis of a $75bn valuation for the oil and petrochemical operations. </p><p>BP already owns a 49pc stake in RIL's $2bn fuel retail business, in what is the largest foreign investment in India's fuel retail sector. The joint venture plans to expand its network of retail stations to 5,500 outlets in five years, from around 1,400 now. The O2C business will keep its 51pc stake in the retail operations after the spin-off.</p><p>The plans for the O2C project are expected to receive all necessary approvals by September this year, RIL said.</p><p>RIL's upstream oil and gas operations will not be included in the O2C business. The company, owned by India's richest man Mukesh Ambani, is focusing on retail and telecom ventures.</p><p>RIL has a vision to be a net-zero carbon company by 2035, it said today. The new O2C business will invest in carbon capture and storage technologies to convert CO2 into products and chemicals, and will accelerate the transition from traditional carbon-based fuels to a hydrogen economy, the company said.</p><p class="bylines">By S Dinakar</p></article>
