Why the govt asked a court to restrain $15 bn Saudi Aramco-RIL deal
The government asked a court to restrain a $15 billion deal in which the world’s most profitable company and top oil exporter Saudi Aramco would acquire a stake in India’s biggest conglomerate RIL. ET looks at the issues involved.
The government has taken the unusual step of asking a court to restrain a $15 billion deal in which the world’s most profitable company and top oil exporter Saudi Aramco would acquire a stake in India’s biggest conglomerate Reliance Industries Ltd, controlled by India’s biggest billionaire Mukesh Ambani. ET looks at the issues involved.
The Dispute
Govt has a dispute with Panna, Mukta and Tapti oilfield contractors Shell and RIL (which holds 30%)
Govt has accused them of wrongly accounting for costs and profits in the fields, which reduces the state’s share of income
Govt says cos calculated state’s share of profit by deducting higher income tax than actually paid
It also says contractors reduced govt share by not including marketing margin in field revenue
The tribunal’s rulings so far favour the govt in many points, and the companies in a few.