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Saudi Aramco, world’s largest oil producer invests in $44 billion India refinery project

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Banking on economic reforms introduced by Narendra Modi-led government, Saudi Aramco, the world’s largest oil producer, agreed to enter in an investment deal estimated at $44 billion.

Banking on economic reforms introduced by Narendra Modi-led government, Saudi Aramco, the world’s largest oil producer, agreed to enter in an investment deal estimated at $44 billion on Wednesday. Saudi Aramco and a consortium of Indian state refiners including Indian Oil, Hindustan Petroleum and Bharat Oil agreed to build a mega refinery and petrochemical project on India’s west coast.

Talking to CNBC TV18, Amin H Nasser, President and CEO, Saudi Aramco said the reforms by the Indian government are in the right direction and this is allowing more investment to come into the country. Saudi Aramco is interested in becoming a part of the India’s growth story though JVs, he added.

Saudi Aramco and a consortium of Indian state refiners agreed to build a mega refinery and petrochemical project on India’s west coast for an estimated $44 billion, Reuters reported. There were 14 MoUs signed between the world’s largest oil producer and consortium of Indian state refiners. The oil producer also said it’s interested in increasing its investments in the country.

“Large as this project may be, it does not by itself satisfy our desire to invest in India … We see India as a priority for investments and for our crude supplies,” Reuters reported citing Saudi Arabia Energy Minister Khalid al-Falih.

Saudi Aramco and India’s Ratnagiri Refinery & Petrochemicals (RRPL) – a joint venture of Indian Oil Corp (IOC.NS), Hindustan Petroleum Corp (HPCL.NS) and Bharat Petroleum Corp (BPCL.NS) – signed a MoU to take equal stakes in the project in Maharashtra.

The project includes 1.2 million-barrel-per-day (bpd) refinery integrated with petrochemical facilities that has a total capacity of 18 million tonnes annually.

Saudi Aramco is scheduled for an IPO in the second half of this year.

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