• 4 minutes Pompeo: Aramco Attacks Are An "Act Of War" By Iran
  • 7 minutes Who Really Benefits From The "Iran Attacked Saudi Arabia" Narrative?
  • 11 minutes Trump Will Win In 2020
  • 15 minutes Experts review Saudi damage photos. Say Said is need to do a lot of explaining.
  • 2 hours Let's shut down dissent like The Conversation in Australia
  • 7 mins Ethanol is the SAVIOR of the Oil Industry, Convenience Store Industry, Automotive Supply Chain Industry and Much More!
  • 2 hours One of the fire satellite pictures showed what look like the fire hit outside the main oil complex. Like it hit storage or pipeline facility. Not big deal.
  • 3 hours Saudi State-of-Art Defense System looking the wrong way. MBS must fire Defense Minister. Oh, MBS is Defense Minister. Forget about it.
  • 1 hour Trump Accidentally Discusses Technology Used In The Border Wall
  • 10 hours Ethanol, the Perfect Home Remedy for A Saudi Oil Fever
  • 9 hours Donald Trump Proposes Harnessing Liberal Tears To Provide Clean Energy
  • 16 hours Drone attacks cause fire at two Saudi Aramco facilities, blaze now under control
  • 9 hours Saudis Confirm a Cruise Missile from Iranian Origin
  • 8 hours Saudis Buying Oil From Iraq
  • 41 mins Hong Kong protesters appeal to Trump for support.
  • 1 day China Faces Economic Collapse
  • 1 day Democrats and Gun Views

Aramco Seeks Majority Stake In Massive Indian Refinery

Refinery

Saudi Aramco is negotiating the acquisition of a majority stake in a massive oil refining complex set to be built in the western Indian state of Maharashtra, India’s Economic Times reported, citing unnamed sources with knowledge of the matter.

The Saudi company is insisting on the marketing rights over the entire fuels and petrochemicals output of the 60-million-tons-a-year refinery. It also wants assurances that the complex will use mostly Saudi crude for processing, the sources said.

The refinery, which is currently 50-percent owned by Indian Oil Corporation, and by Bharat Petroleum and Hindustan Petroleum with 25 percent each, is estimated to cost US$46.1 billion (3 trillion rupees). It should be completed by 2022 and will have a daily throughput capacity of 300,000 bpd of crude.

This is certainly an extremely lucrative opportunity for the Kingdom, which is actively seeking new investment opportunities outside crude oil production. Refining is an obvious diversification direction, and Aramco has been pursuing it actively in the last couple of years.

The company is paying Asia special attention as the region that is driving global crude oil demand growth. Aramco already has solid financial interests in the refining industry of Japan, Malaysia, Indonesia, and China. It is also looking to buy stakes in existing Indian refineries.

Related: The Oil Major That Won’t Leave Iran

India is the natural center of gravity for oil producers. Its oil demand is set to grow at a faster rate than neighbor China, and it still imports most of its crude from Middle Eastern producers, while China is diversifying away from the Middle East. This makes India the perfect focus of an investment strategy aimed at ensuring a market for Saudi crude and possibly marketing rights to refined products for additional revenues.

As Energy Minister Khalid al-Falih recently said on Aramco’s Indian push, “All of these are illustrated commitments by the Kingdom and the company to be not only a supplier, but an investor in India at an unmatched scale.”

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • RefMan on March 20 2018 said:
    Something is not right with those numbers. Pretty sure it doesn't cost $46 Billion to build a 300,000 barrel refinery. Also since when is 300,000bpd considered massive?

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play