Published: Thu, April 12, 2018
Medical | By Garry George

India, Saudi Aramco to partner on $44 billion refinery-petchem project

India, Saudi Aramco to partner on $44 billion refinery-petchem project

(RRPCL), a consortium of Indian oil companies which includes The Indian Oil Corporation Ltd. (IOCl), Bharat Petroleum Corporation Ltd. (BPCL), and Hindustan Petroleum Corporation Ltd. (HPCL), jointly to develop and build an integrated mega-refinery and petrochemicals complex at Ratnagiri, in the state of Maharashtra.

The Indian plant will be one of the largest refining and petrochemical complexes in the world, built to meet fast-growing fuel and petrochemicals demand in India and elsewhere.

The oil company Saudi Aramco took first steps to expand the largest United States refinery, operated by its subsidiary Motiva Enterprises.

"The air force announced the execution of air strikes with the Qasef-1 aircraft on Aramco in Jizan (province)", the channel said on its Twitter account, referring to a drone the Houthis unveiled a year ago. "Aramco will not stop discussing other opportunities because we see India as a priority destination for our investment and energy supplies", he said.

In the absence of a pick up demand oil prices had remained subdued for the last three years with large customers like India also looking at markets beyond Saudi Arabia to get oil at competitive pricing. Saudi Aramco expects to invest between $8 billion and $10 billion dollars in the projects, pending the evaluations.

Saudi Arabia has been interested in India for quite some time, with Energy Minister Khalid al-Falih saying earlier of its Indian push that "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".

Aramco, like other major producers, wants to tap rising demand growth and invest in the world's third-biggest oil consumer.

Aramco's CEO Amin Nasser said last month that his company was on track for a 2018 listing, but that the choice of date and venue was a decision for the company's owner, the Saudi government. "We are tyring to signal to all the stakeholders that there will be certainly and that we will not sit by and let another glut re-surface in the coming year and bring the market".

Saudi Arabia is one of the world's top three oil producers with Russian Federation and the United States, while Aramco is the biggest company putting oil on the world market now awash with product. For India too, Saudi Arabia was the biggest source of crude till 2016-17 (April-March) till it lost that position to Iraq in 2017-18.

Nasser said he was not anxious by rising supplies from regional rivals to India.

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