WTI Crude

Loading...

Brent Crude

Loading...

Natural Gas

Loading...

Gasoline

Loading...

Heating Oil

Loading...

Rotate device for more commodity prices

Mexico Auctions First Gas Pipeline Capacity

Mexico Auctions First Gas Pipeline Capacity

Mexico’s CENAGAS has administered its…

Zainab Calcuttawala

Zainab Calcuttawala

Zainab Calcuttawala is an American journalist based in Morocco. She completed her undergraduate coursework at the University of Texas at Austin (Hook’em) and reports on…

More Info

Saudi Aramco Enters Talks To Buy Share In New Indian Refinery

Oil

Saudi Aramco has begun talking up India to purchase a stake in the Asian giant’s upcoming west coast refinery, according to an announcement made by Oil Minister Dharmendra Pradhan.

The official told reporters in New Delhi that selling part of the 1.2 million barrels per day (bpd) facility would give India a greater voice in the international oil trade.

Current plans give Indian Oil Corp a 50-percent stake, while Hindustan Petroleum Corp and Bharat Petroleum Corp each get 25-percent stakes.

Aramco, Saudi Arabia’s state oil company, is currently planning an initial public offering to raise anywhere from $100-$400 billion in capital that will diversify Saudi’s oil dependent economy.

Apart from Tadawul, the KSA owned stock exchange, Riyadh wants one foreign listing for the 2018 IPO. New York, London, Toronto, and other financial hubs have competed for the opportunity to host the largest IPO ever over the past few months.

Though no Indian cities are on the shortlist for this honor, Pradhan mentioned in May that Indian refiners were interested in purchasing a stake in Aramco once its shares float next year. In exchange for providing New Delhi a reliable source of crude, Saudi Arabia would participate in new refinery projects.

Related: Kurdish Oil: The Two Biggest Threats

“I'm expecting Aramco to be a supplier for a very long time,” Pradhan said. “We discussed the idea with [Saudi energy] minister [Khalid al] Falih in Houston this year. [Aramco] is interested in the joint venture.”

Riyadh has also invited China—India’s main trade rival—to be a cornerstone investor in the IPO. Beijing has begun assembling a consortium of oil companies to buy Aramco shares, while Hong Kong has been vying for the listing independently. The Chinese bourse stands as a front-runner to host the IPO amongst Saudi’s options in Asia.

By Zainab Calcuttawala for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Naomi on June 15 2017 said:
    Saudi Arabia has surplus unemployed labor. Saudi Arabia pays $Billions to the finest Western universities to credential Saudi students in engineering, physics, law, medicine, accounting, and business. Passing strange that Saudi Arabia invests to build refineries, chemical manufacturing, solar energy, semiconductors, et.al. in foreign lands.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News