The Prime Minister of India Narendra Modi has said on Tuesday that Saudi Arabia will invest in Indian downstream oil and gas projects, in order to foster a strategic partnership between Saudia and India. The move is expcted to provide Saudia with a stable market for its crude.
Narendra Modi is on a two-day visit to Saudia for participation in an investor summit. He is also scheduled to meet King Salman bin Abdulaziz Al Saud and Crown Prince Mohammed bin Salman later.
Reuters report that Saudi Aramco and National oil company ADNOC of UAE has signed an initial deal with Indian state-run companies for a 50% shares in an upcoming 1.2 million barrels per day (bpd) refinery to be located on India’s west coast.
The Indian government also plan to sell its entire 53% holding in government-owned refinery Bharat Petroleum Corp, at an estimated valuation of $10 billion.
Reuters also report that Saudi Aramco also intends to take up a 20% stake in the petrochemical and refining segment of Reliance Industries in a multibillion-dollar deal.