Aramco seeks to enhance its influence in energy markets by investing in India!

Saudi Aramco aims to expand its presence in the Indian market by investing in two new refineries, in a strategic move to secure a steady outlet for its oil exports in one of the fastest-growing emerging economies, according to information cited by Reuters from informed sources.

Details of the Investment Projects

Aramco is in negotiations to enter the Bharat Petroleum Corporation refinery planned to be built in Andhra Pradesh, southern India, as well as another refinery affiliated with the Oil and Natural Gas Corporation in Gujarat, western India. Both projects are managed by Indian government companies.

Although the refinery project in Gujarat is still in its early stages, Bharat Petroleum announced last December a massive investment plan worth $11 billion to develop its project in Andhra Pradesh.

Aramco Sets Its Terms While India Seeks Balance

Sources in the refining sector confirmed that the projects will proceed whether with or without Aramco's involvement, as one source stated, "Everything depends on the investment offer that the Saudi company will provide."

Aramco proposes to supply the equivalent of three times its share in each project, with a desire to sell its production in the Indian market or export it globally. However, this proposal faces some obstacles, as a knowledgeable source indicated that "India seeks flexibility in purchasing crude oil, and if Aramco obtains 30% of the share, it demands to supply 90% of the production capacity, which may not be acceptable."

This Saudi interest in the Indian market comes amid India's efforts to become a global hub for refining, especially as Western companies reduce their production capacities as part of their transition to clean energy. India is currently the third-largest importer and consumer of oil globally, making it a strategic destination for major global energy companies, led by Saudi Aramco.

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