In line with its earlier stated plan, RIL has completed spin-off of the company's oil-to-chemical (O2C) business into a new unit. The move will enable the conglomerate to pursue growth opportunities by entering into strategic partnerships. The oil-to-chemical (O2C) business unit includes Reliance's oil refinery and petrochemical assets and retail fuel business. Nonetheless it does not comprises upstream oil and gas producing fields like KG-D6 and textiles business.
Also, in its Q3FY21 earnings, RIL for the first time reported integrated earnings of its O2C business. Herein the earnings statement of both refining and petrochemical and fuel retail business were reported as one. And so it did not come up with the refining margins-the measure used to judge the company's oil refining business.
"Reorganising refining and petrochemicals as oil-to-chemicals (O2C) reflects new strategy as well as management matrix," the company said in a post earning investor presentation. This, it said, will "facilitate holistic and agile decision making" as well as "pursue attractive opportunities for growth with strategic partnerships".
The hiving off this division begun last year for a possible stake sale to companies including Saudi AramcoIt values the O2C business at USD 75 billion and has been in talks with Saudi Arabian Oil Co (Aramco) for sale of a 20 per cent interest. And there have come to light valuation hurdles to the implementation of the stake sale.
With PTI Inputs