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Saudi Aramco plans to invest in a new refinery in India

2026-01-07View Original

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  According to Sinochem New Network, Saudi Aramco recently announced that it is planning to acquire a 20% stake in a newly built refinery in India. This refinery is planned to be built by India’s state-owned refiner Bharat Petroleum Corporation (BPCL), with a total investment of around $11 billion. It will be located at the Ramayapatnam port on India’s east coast, and its designed processing capacity will be 180,000 to 240,000 barrels per day.   As India’s second-largest state-owned refiner, BPCL plans to sell 30% to 40% of its shares to external investors. In addition to Saudi Aramco, Indian Oil Corporation (OIL) will hold nearly 10% of the shares, while another 4% to 5% of the shares are planned to be sold to interested banks. BPCL acquired the 6,000 acres of land required for the project earlier last year. At the request of the Andhra Pradesh government, this refining project is required to be put into commercial operation by January 2029.   Currently, BPCL operates three refineries in India. Indian refiners are actively expanding their crude oil processing and petrochemical production capacity to meet the growing domestic demand. For Saudi Arabia, this move is aimed at securing **** channels for its crude oil in key Asian markets. It is reported that Saudi Aramco is also in talks with ONGC regarding investment in another planned refinery in Gujarat.

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