Saudi Aramco is pressing ahead with plans to become the world’s biggest oil refiner and a top chemicals maker to secure future demand for its crude and bolster growth. The state oil producer is looking to invest in projects that are already built or under construction in markets with the fastest-growing demand such as India and China,
Saudi Aramco’s trading arm bought 70,000 tonnes of naphtha from Indian Oil Corp (IOC.NS) on Friday at premiums not seen since 2013 as it seeks to plug a supply gap following Sept. 14 attacks on its facilities, trade sources said on Monday.
Crude oil prices in the international market eased on Tuesday after Saudi Aramco said it intends to restart full output next week, recovering from the hit following recent drone attacks. Brent crude oil price fell to $62.6 per barrel by Tuesday’s afternoon, which is almost in-line with the pre-attack levels.
Last Saturday, as simultaneous explosions went off at Aramco’s Khurais oilfield and Abqaiq processing facility in Saudi Arabia, an all-too-familiar sense of dread swept over Indian markets and consumers.
If all goes well, the world’s leading oil company Saudi Aramco would soon be India’s key strategic partner in Narendra Modi government’s mega project, the West Coast Refinery, worth over Rs 4 lakh crore.
Major oil producer Saudi Aramco was still keen to invest in a joint venture with Indian Oil, Hindustan Petroleum and Bharat Petroleum, but Saudi Arabia’s state-owned oil company is still in the early stages of that investment, said N Vijaygopal, director of finance, BPCL, in an interview with CNBC-TV18.
Saudi Aramco’s decision to invest in Reliance Industries’ oil-to-chemicals business is the first step towards a strategic partnership which will entail carving out the business into an independent company and growing it, says RIL’s executive director, PMS Prasad.
Saudi Aramco reported a 12% fall in half-year net profit on Monday, yet remained the world’s most profitable company, while India’s Reliance Industries (RELI.NS) said Aramco is looking to buy into its refining and petrochemicals business.
The Reliance Industries talks to grant a minority stake in its refining assets to Saudi Aramco have hit a roadblock over the valuation and structure of the deal, two people familiar with the matter said.
Maharashtra has identified a new site for the planned $44 billion oil refinery that state-run firms are building with Saudi Aramco and Abu Dhabi National Oil Co (ADNOC), Chief Minister Devendra Fadnavis said on Wednesday.