Aramco Eyes India's Refinery Boom with $2.8B Stake

Saudi Aramco is preparing to acquire a 20 percent stake in two new Indian refineries being developed by state-owned enterprises Oil and Natural Gas Corporation (ONGC) and Bharat Petroleum Corporation Limited (BPCL). This strategic investment aligns with Saudi Arabia’s broader objective to secure long-term crude oil markets in India, the world’s fastest-growing major economy.

The oil major is currently in advanced discussions to invest in BPCL’s proposed refinery in Andhra Pradesh and ONGC’s upcoming project in Gujarat. Each greenfield facility is planned to have an annual crude processing capacity of 12 million tonnes and will be financed with a debt-equity ratio of 7:3.

Aramco’s initial investment across both projects could total approximately USD 2.8 billion, with the potential to increase to USD 5 billion as development progresses.

This move underscores the strengthening of energy cooperation between India and Saudi Arabia. A framework agreement was signed during Indian Prime Minister Narendra Modi’s official visit to Riyadh on April 23, 2025, committing both nations to joint development of new refineries in India. However, specific terms of Aramco’s participation are still under negotiation.

News by Rahul Yelligetti.