As of now it only looks like the planned sale of 20% in the O2C business to Aramco for $15 billion has been stalled. Saudi Aramco had sought a minimum cut of 20% in its valuation. So, Aramco would look at a 20% stake at $12 billion instead of $15 billion. The O2C business includes 2 refineries at Jamnagar, petrochemical plants and 51% in fuel retailing venture.

The slump in crude prices had substantially squeezed gross refinery margins or GRMs leading to reworking of valuations. However, Reliance had been unwilling to reopen the valuation topic or to resize debt. However, at the AGM, Mukesh Ambani only hinted at a delay. Clearly, now Ambani is not really keen to do the deal at a disadvantaged price.

Aramco is a significant supplier of crude oil to Jamnagar refineries and the deal would have made business sense. The AGM statement to hive off the O2C business into a separate entity could have larger implications though it is not clear right now. RIL is no longer counting on the O2C sale as it already has enough cash to become zero net-debt.