(Bloomberg) -- Malaysia’s state oil giant Petroliam Nasional Bhd. is nearing a deal to acquire a minority stake in the ammonia unit of India’s AM Green for about $1.6 billion, according to people familiar with the matter.

Petronas is in advanced talks to buy about a 25% stake in the unit, which may be valued at around $6 billion in a deal, the people said. The companies are finalizing the details and an announcement could be made as soon as in the coming days, said the people, who asked not to be identified as the information is private.

While discussions are advanced, they could still be delayed or fall apart, the people said. A representative for Petronas declined to comment, while a representative for Greenko Group, which shares the same founders with AM Green, didn’t immediately respond to a text message seeking comment.

India has set its sights on slashing reliance on oil and coal as it chases the target of being net-zero carbon by 2070. The country’s green energy sector has been attracting investments from both local and foreign investors. Saudi Arabia’s sovereign wealth fund will consider opening an office in India as the kingdom is keen to invest in sectors including green energy and petrochemicals in the South Asian nation.

French oil giant TotalEnergies SE this week announced plans to invest $300 million in a joint venture with Adani Green Energy Ltd. The new JV company will house a 1,050-megawatt portfolio consisting of solar and wind projects.

Petronas had nearly 50,000 employees spanning over 100 countries as of the end of 2022, its annual report shows. Its profit after tax doubled to 101.6 billion ringgit ($21.7 billion) last year, from 50.9 billion ringgit in 2021. India, where Petronas sells crude oil and condensates and petroleum products, accounted for 2% of the Malaysian state-owned firm’s total revenue last year.

--With assistance from Elffie Chew.

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