Govt may give Saudi Aramco 50% stake in planned Ratnagiri refinery

Govt may give Saudi Aramco 50% stake in planned Ratnagiri refinery

Govt may give Saudi Aramco 50% stake in planned Ratnagiri refinery

Saudi Arabia's energy minister has raised concerns that litigation would complicate a listing in NY, although President Donald Trump has publicly lobbied for listing of Aramco in the United States.

“Investing in India is a key part of our companys global downstream strategy, and another milestone in our growing relationship with India, ” said Saudi Aramco President and CEO Amin H. Nasser, who also noted the opening in 2017 of Aramco Asias New Delhi office with a mandate to expand Saudi Aramcos worldwide portfolio in this key economic growth region.

Saudi Aramco will supply at least 50 percent of the crude to be processed at the planned refinery, he said.

Saudi petrochemical company SABIC is also keen to invest in a cracker and other facilities in India, Falih said.

Engineering and design work will begin late this year and when complete the plant will produce more than 2.7 million metric tons of high-value chemicals, a press release put out by Total said. An opening (up of economy) we have never seen before. "The whole world is witnessing a change in India with transparency and easing of doing business".

Saudi Arabia's Crown Prince Mohammed bin Salman, who was finishing a two-week visit to the U.S., was present at the signing in Houston, along with Saudi Energy Minister Khalid al-Falih and U.S. Energy Secretary and former Texas Gov. Rick Perry. He further stated that participating in this mega project will allow Saudi Aramco to go beyond the role of crude oil supplier to a fully integrated position which supports India's future energy demands. "As much as we are sympathetic with the price pinching. We will only list when the market is right", he said. "We want to be consumer-facing".

But in the first 11 months of 2017-18 fiscal, Saudi supplies at 33.9 million tonnes lagged behind Iraqi exports of 42.4 million tonnes to India. It had supplied 39.5 million tonnes of crude oil to India in 2016-17, ahead of 37.5 million tonnes by Iraq. India's expanding economy and a burgeoning middle class driving automobile sales makes it an attractive market for oil producers.

Like other major producers, Aramco is looking to lock in customers in the world's third-largest oil consumer through the investment. The International Energy Agency anticipates that petrochemicals will account for a quarter of the growth in global oil consumption during the next five years as electric cars and renewables erode demand for gasoline.

Related news