Saudi Aramco looks to invest in Indian refineries, sources say

 Saudi Aramco Eyes Investment in Indian Refineries to Strengthen Energy Ties

Saudi Aramco, the world’s largest oil producer, is reportedly exploring investment opportunities in Indian refineries, signaling its commitment to strengthening energy ties with one of the world’s fastest-growing economies. According to industry sources, the Saudi oil giant is in discussions with key Indian refiners to expand its presence in the country’s energy sector.

Saudi Aramco looks to invest in Indian refineries, sources say

Saudi Aramco’s Interest in India’s Refining Sector

India, the third-largest oil consumer globally, is a strategic market for Saudi Aramco. The company has long expressed interest in investing in India’s refining and petrochemical industry to secure long-term crude supply agreements and expand its downstream footprint. Sources suggest that Aramco is evaluating potential partnerships with both state-owned and private refineries to enhance its market presence.

Potential Collaborations and Investments

Saudi Aramco has previously engaged in talks with Indian oil companies, including Reliance Industries, Indian Oil Corporation (IOC), Bharat Petroleum (BPCL), and Hindustan Petroleum (HPCL). In 2019, Aramco had shown interest in acquiring a stake in Reliance’s refining business, though the deal did not materialize. The company also remains interested in participating in the West Coast Refinery Project, a $44 billion joint venture planned by Indian oil firms.

Why India?

India’s rising energy demand and ambitious plans to expand refining capacity make it an attractive destination for foreign investment. With the government aiming to increase the country’s refining output to meet growing consumption, Saudi Aramco’s potential entry could play a crucial role in fulfilling India’s energy needs.

Strengthening Saudi-India Energy Relations

Saudi Arabia is already a major oil supplier to India, and deeper investment in the refining sector could further cement the bilateral energy partnership. In recent years, India has diversified its crude oil imports, but Saudi Aramco remains a key player in ensuring energy security for the country.

Looking Ahead

While discussions are still in the early stages, Saudi Aramco’s potential investment in Indian refineries could reshape the regional energy landscape. If finalized, the move would not only benefit India’s refining sector but also align with Saudi Arabia’s strategy to diversify its economy beyond crude exports.