Saudi Aramco is thinking of investing in Indian refineries – Saudi Aramco is Thinking of Investing in Indian Refiners

Saudi Aramco is talking for investment in two planned refineries in India. The world’s leading oil exporter is looking for a stable outlet for its crude oil in the fastest growing emerging market in the world. Many Indian sources said this.

The world’s third largest oil consumer and importer India wants to become the center of global refining as Western companies are turning to clean fuel and decreasing crude oil processing capacity. Meanwhile, Saudi Arabia’s stake in India’s oil imports has declined as refinery companies have invested billions of dollars to advance their plants and thus include variety in sources of crude oil to use cheap options such as Russia.

Aramco, BPCL and ONGC did not comment about this. Both Indian companies are owned by the government. ONGC’s Gujarat Refinery Scheme is still in an early stage. BPCL chairman said in December that he aims to invest $ 11 billion in the Andhra Pradesh refinery and petrochemical project.

Two refinery sources said that the projects will proceed according to the scheme, whether Aramco will invest or not. He said, all things will depend on the proposal of Aramco. Sources said that the government -controlled Aramco proposes to supply oil equal to three times the stake in the project and she wants to sell its share of production either in India or through exports.

The second refinery source said, “We want flexibility in the purchase of crude oil.” If we give them 30 per cent stake, they would like to supply crude oil equal to 90 per cent capacity, which is not possible.

First Published – March 27, 2025 | 10:44 pm IST