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Saudi Arabia to Jointly Develop Two Refineries in India
In a major step to boost bilateral energy cooperation, Saudi Arabia is set to partner with Indian companies to jointly develop two large-scale oil refineries in India. Each refinery will have an estimated processing capacity of 9 million tonnes per annum (mtpa), reinforcing Saudi Arabia’s strategic push to strengthen its presence in India’s expanding energy market.
The development follows high-level talks between Prime Minister Narendra Modi and Saudi Crown Prince Mohammed bin Salman, during which both leaders agreed to advance joint energy initiatives. The refineries are expected to serve as vital infrastructure for both refining and petrochemical integration.
Saudi Aramco, the kingdom’s state-owned oil giant, is in advanced talks to acquire up to a 26% equity stake in both projects. The investment from Aramco could reach approximately ₹18,000 crore. The move aligns with Saudi Arabia’s broader objective of securing long-term crude oil outlets in rapidly growing economies.
Key Indian Partners: BPCL and ONGC
On the Indian side, two major public sector undertakings are involved: Bharat Petroleum Corporation Limited (BPCL) and Oil and Natural Gas Corporation (ONGC). BPCL is working on a feasibility report for a refinery-cum-petrochemical complex in Andhra Pradesh, projected to have a capacity between 9 and 12 mtpa. A 9 mtpa configuration is estimated to cost around ₹95,000 crore.
ONGC is also expected to participate in the second refinery project, though specific site and configuration details are yet to be finalized. Both projects are expected to be located strategically to support regional energy needs and export potential.
Strategic Energy Collaboration
This collaboration reflects a renewed momentum in Indo-Saudi relations, particularly in the energy sector. The planned refineries are part of India’s broader efforts to scale up its refining capacity to meet future demand and diversify energy sources. For Saudi Arabia, this venture provides an opportunity to deepen its influence in the downstream petroleum sector of one of the world’s fastest-growing economies.
Beyond the economic significance, the projects underscore a strategic alignment between the two countries. As India looks to secure reliable energy supplies and Saudi Arabia diversifies its investment portfolio, this joint venture stands as a symbol of long-term partnership in an evolving global energy landscape.
