India’s Reliance Industries Ltd (RIL) shelved a proposed deal to sell a 20% stake in its oil refinery and petrochemical business to Saudi Aramco for $15bn. This comes over two years after both companies signed a non-binding letter of intent in August 2019. Reliance had announced the deal at a time when it was under pressure to clean up its debt-heavy balance sheet. It has since cut its liabilities, secured billions in investment into Jio and Reliance Retail from Facebook, Google, private equity funds and Saudi Arabia’s sovereign Public Investment Fund. Talks also stagnated with the onset of the pandemic, which weighed on energy markets and Aramco’s finances.

Both companies mutually determined that it would be beneficial to re-evaluate the proposed investment. “Reliance and Aramco have a longstanding relationship and will continue to look for investment opportunities in India,” RIL said in a statement. “India offers tremendous growth opportunities over the long term and Aramco continues to evaluate new and existing business opportunities with our potential partners.”

Reliance’s dollar bonds were stable, with its USD 3.667% 2027s down 0.27 to 107.455.

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