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Saudi Aramco likely to pick 20% each in new BPCL, ONGC refineries
Saudi Aramco is likely to acquire 20 per cent ownership in two new refineries planned by state-owned companies Oil and Natural Gas Corp (ONGC) and Bharat Petroleum Corp (BPCL). The move comes as Saudi Arabia, the world’s top oil exporter, looks for a stable outlet for its crude in the world’s fastest-growing emerging market.
Aramco is in separate talks to invest in BPCL’s planned refinery in the southern state of Andhra Pradesh and a proposed ONGC refinery in Gujarat. Both projects are expected to operate with a debt-equity ratio of 7:3.
Each refinery will have the capacity to process 12 million tonnes of crude oil yearly. Aramco’s initial investment in both facilities could total around $2.8 billion. These investments could potentially increase to $5 billion in the future.
While an agreement was signed between the two countries to establish refineries in India during Prime Minister Narendra Modi’s visit to Riyadh on April 23, the specific arrangements are still being worked out.
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