Saudi Aramco is in talks to invest in two major refineries planned in India, as the world’s leading oil exporter seeks a reliable market for its crude in the rapidly growing Indian economy, reported Reuters citing sources.
As per the media report, Aramco’s investment discussions are linked to India’s ambition to become a global refining hub, especially as Western companies reduce crude processing capacity due to their shift to cleaner fuels.
As the world’s third-largest oil consumer and importer, India is keen to increase its refining capabilities. However, Saudi Arabia’s share of India’s oil imports has been decreasing. This shift is primarily due to Indian refiners diversifying their crude sources, looking for cheaper alternatives, including imports from Russia, following significant investments in plant upgrades.
Aramco is currently in separate talks to invest in two key refinery projects: one with Bharat Petroleum Corp (BPCL) in Andhra Pradesh and another with Oil and Natural Gas Corp (ONGC) in Gujarat, according to multiple sources, as per news report by Reuters.
Despite Aramco’s involvement, both refinery projects are expected to continue regardless of the final investment decisions. However, media report say that the terms of Aramco’s proposal will heavily influence the final decision.
