Skip to content 
Search

Latest Stories

Saudi Aramco signs $44 bn deal for mega Indian refinery

Saudi Aramco on Wednesday (11) announced a $44-billion deal to build a giant refinery complex in India with three Indian firms that will become a crucial new outlet for the world's biggest supplier.

The refinery at Ratnagiri on the west coast will be able to process up to 1.2 million barrels of crude a day, the Saudi company said after signing a memorandum of understanding with Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation.


Ratnagiri will be among the world's largest "refining and petrochemicals projects and will be designed to meet India's fast-growing fuels and petrochemicals demand. The project cost is estimated at around $44 billion," said a statement.

"Saudi Aramco is the only company that can undertake (a) project of this scale," company president Amin Nasser said in Delhi.

The Indian accord is just the latest in a string of deals -- with French, US and Asian companies -- announced by Aramco as it seeks secure markets for its oil and to move away from being just a producer.

Saudi Arabia is one of the world's top three oil producers with Russia and the United States, while Aramco is the biggest company putting oil on the world market currently awash with product.

It will provide half of the oil to be processed at the new refinery, Saudi Oil Minister Khalid Al-Falih told reporters.

Iraq has in the past year overtaken Saudi Arabia as India's main oil supplier so the refinery would be a major boost.

- India is 'key' -

"Investing in India is a key part of our company's global downstream strategy, and another milestone in our growing relationship with India," said Aramco president Nasser.

"Participating in this mega project will allow Saudi Aramco to go beyond our crude oil supplier role to a fully integrated position that may help usher in other areas of collaboration, such as refining, marketing, and petrochemicals for India's future energy demands," he added.

Indian Oil, Bharat Petroleum and Hindustan Petroleum have set up a joint venture for the deal with Aramco, called Ratnagiri Refinery and Petrochemicals Ltd.

Aramco said it may "seek to include a strategic partner to co-invest in the mega refinery".

The Saudi giant and French firm Total this week announced a $5-billion deal to build a refinery at Jubail in Saudi Arabia.

Last month, Aramco awarded more than $8 billion worth of contracts to American firms to boost its US refinery operations.

Aramco has also pledged billions of dollars for deals in Malaysia and Indonesia in the past year.

In each case, supply deals have been a condition of refinery investment. Aramco is also carefully planning a huge stock market listing, ordered by Saudi Crown Prince Mohammed bin Salman, amid the turbulence of the world oil market.

The hotly-awaited stock market debut will happen in 2018 or 2019, depending on the market, the kingdom's finance minister told AFP on Tuesday.

"If the market is ready in 2018, we will go in 2018. If not, we will wait until 2019," Mohammed al-Jadaan said of the giant initial public offering.

"We are not desperate for listing. We will only list when the market is right," he said.

Jadaan said the government had not yet decided whether to list Aramco on the Saudi exchange alone, on a stock market abroad or seek a dual listing.

Saudi authorities plan an initial listing of five percent of Aramco, that would bring in more than $100 billion and would value the company overall at $2 trillion.

More For You

Asian firm acquires Kings Court Hotel for £2.75m

UK-based Nanak Hotels acquired the 60-room Kings Court Hotel in Warwickshire for £2.75 million. (Photo: Colliers International UK)

Asian firm acquires Kings Court Hotel for £2.75m

UK-BASED Nanak Hotels recently acquired the 60-room Kings Court Hotel, a 17th-century property in Warwickshire, England, for £2.75 million. This is the first regional acquisition by the privately held firm led by British Indians Harpreet Singh Saluja and Karamvir Singh.

Nanak Hotels, which operates a UK property portfolio, plans to invest in the property's refurbishment and repositioning, according to a statement from Colliers International UK, which brokered the transaction.

Keep ReadingShow less
Priya Nair becomes first woman CEO in Hindustan Unilever's history

Priya Nair (Photo: Unilever)

Priya Nair becomes first woman CEO in Hindustan Unilever's history

PRIYA NAIR has been appointed as the CEO and managing director of Hindustan Unilever Ltd (HUL), effective from August 1. She will be the first woman to lead the company in its history.

The announcement was made by HUL on Thursday (10). Nair, who currently serves as president, Beauty & Wellbeing at Unilever, will take over the role from Rohit Jawa, who will step down on July 31 to pursue other interests.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London.
Getty Images

Economy shrinks again in May, hitting Labour’s growth plans

THE UK economy contracted unexpectedly in May, marking the second consecutive monthly decline, according to official data released on Friday. The figures present a challenge for the Labour government as it attempts to revive economic growth.

Gross domestic product fell by 0.1 per cent in May, following a 0.3 per cent contraction in April, the Office for National Statistics (ONS) said in a statement.

Keep ReadingShow less
SBI UK cuts mortgage rates

The bank's commitment to green lending reflects focus on sustainability (Photo: Getty Images)

SBI UK cuts mortgage rates

BANKING major State Bank of India (UK) has cut interest rates on its buy-to-let mortgage products to help landlords reduce borrowing costs.

The bank said the rate cuts would help landlords invest in rental properties and meet growing demand for rental homes across the UK.

Keep ReadingShow less