Reliance Industries’ previously announced $15bn deal with Saudi Aramco pertaining to its oil-to-chemicals (O2C) business has been scrapped.

The development comes amid the Indian conglomerate’s decision to drop its plans of carving out the O2C business as a separate entity, citing the evolving nature of its business portfolio.

In this connection, Reliance Industries had withdrawn its application to the National Company Law Tribunal (NCLT) that had sought approval for the proposed spin-off.

According to the Indian group, considering the changed situation, it has mutually agreed with Saudi Aramco that it will be beneficial for both of them to re-assess the proposed investment by the latter in the O2C business.

The parties had signed a non-binding letter of intent (LOI) in August 2019 under which the Saudi national oil company would acquire a stake of 20% in the O2C division, which was valued at $75bn at that time.

The deal was originally estimated to be completed by March 2020 but was delayed due to factors such as the Covid-19 pandemic and unforeseen circumstances in the energy market.

Reliance Industries’ O2C unit includes the group’s refining and marketing, and petrochemicals operations. Among these is the Jamnagar refinery in Gujarat, India, which the group expects to be the core for its new businesses of renewable energy and new materials.

The conglomerate said that it will continue to be the preferred partner of Saudi Aramco for investing in the private sector in India. Besides, it plans to continue collaborating with the Saudi group and its subsidiary SABIC for making investments in Saudi Arabia.

Reliance Industries stated: “Saudi Aramco and RIL have a very deep, strong and mutually beneficial relationship, that has been developed and nurtured by both companies over the last 25 years. Both companies are committed to collaborate and work towards strengthening the relationship further in the years ahead.”