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Oil report

India Reliance's stake sale talks with Aramco stall over valuation, sources says

NEW DELHI/LONDON/DUBAI, July 16 (Reuters) - Talks about selling a 20% stake in Reliance Industries Ltd’s oil-to-chemical business to Saudi Aramco have stalled over the valuation, four sources familiar with the matter said, as the energy market has been hit by COVID-19.

Aramco wants India’s Reliance to review its price for the oil-to-chemical business as the global valuation of oil assets has tumbled due to falling demand for crude, one source said.

A second source said Aramco wanted to “revisit” the valuation.

Reliance Chairman Mukesh Ambani told shareholders on Wednesday a deal had been delayed due to “unforeseen circumstances in the energy market and the COVID-19 situation”.

Editing by Edmund Blair

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