Saudi Aramco in talks with RIL for more projects
NEWDELHI: The world’s biggest oil producer, Saudi Arabian Oil Co., or Saudi Aramco, is in talks with Mukesh Ambani-controlled Reliance Industries Ltd (RIL) for further investments in India.
This comes against the backdrop of Saudi Aramco partnering with a consortium of Indian staterun companies to set up the largest global refinery and petrochemical complex at Ratnagiri in Maharashtra at an investment of $44 billion. The Maharashtra government has, however, decided to shift the project from Ratnagiri district.
“We are looking at additional investment in India. So we are in discussions with other companies as well, including Reliance,” Amin H Nasser, president and chief executive officer of Saudi Aramco said on Wednesday.
Saudi Aramco’s interest is driven by India’s energy demand, which is expected to grow at 4.2% over the next 25 years. Saudi Arabia is a crucial source of energy for India and hosts a number of expatriate Indians.
“We want Saudi Aramco and Sabic to be household names,” Saudi Arabia’s energy minister Khalid Al-falih said at a panel discussion in New Delhi. Other opportunities are also being looked at, he said.
Saudi Aramco plans to enter fuel retailing in India and apart from investing in the refinery project, will also supply crude oil, thus ensuring supply security. India has been seeking Saudi investment in its infrastructure sector. reported on June 14 about the public investment fund (PIF) of Saudi Arabia, which has invested in Softbank’s Vision Fund and ride-hailing firm Uber,
Mint
looking to invest in India’s infrastructure sector.
“We are not limited to that investment, which is the mega refinery...we are looking at other opportunities,” Nasser said. “There is a new India and a new Saudi Arabia,” said Majid Al Qasabi, Saudi Arabia’s commerce and investment minister.
Saudi Aramco’s India play has been in the works for some time now and follows Prime Minister Narendra Modi’s visit to the Gulf kingdom in 2016. It marks a reset in the global energy architecture, with buyers at the centre of oil majors’ future growth plans. India is the world’s third-largest energy consumer after the US and China. “One investment no matter how big is not enough,” Falih said. “India is our number one priority for investment outside the Kingdom of Saudi Arabia,” he said.
The promoters of the refinery project include Indian Oil, Hindustan Petroleum Corp. Ltd (HPCL) and Bharat Petroleum Corp. Ltd (BPCL). Abu Dhabi National Oil Co. (Adnoc), the state-run oil firm of the UAE, has picked up a stake in the $44 billion refinery and petrochemicals project from Saudi Aramco.
An RIL spokesperson did not respond to phone calls and a text message.