Saudi Arabia is considering investment opportunities in Indian Government-backed Bharat Petroleum Corporation Limited’s (BPCL) new refinery project, reported Moneycontrol, citing sources.
The potential investment aligns with the kingdom's $100bn (Rs8.4trn) investment intentions for India.
BPCL is in the preliminary phase of establishing a refinery to cater to the country's escalating energy needs and is currently finalising a location for this venture.
In 2019, Saudi Arabia and India signed a memorandum of understanding, announcing the kingdom's investment plan across various sectors including energy; however, these investments have yet to be realised.
Last month, India's Petroleum Secretary, Pankaj Jain, engaged with Saudi energy ministers and officials from Aramco in Riyadh, discussing bilateral cooperation in the oil and gas sector.
The Indian Government is actively working to augment the nation's refining capacity and inaugurate new refineries to satisfy growing domestic demand.
Following the unsuccessful attempt to establish a 60 million tonnes per annum (mtpa) refinery in Ratnagiri, Maharashtra, India's Oil Minister, Hardeep Singh Puri, suggested in May 2023 that the country should consider constructing smaller refineries to circumvent land acquisition challenges.
In June, reports emerged that BPCL is planning a 12mtpa refinery with an investment of Rs500bn.
While Puri confirmed BPCL's intentions to build greenfield refineries, he withheld details on the timeline and location.
BPCL is exploring potential sites in Andhra Pradesh, following discussions with the state’s Chief Minister Chandrababu Naidu, and is also considering Prayagraj in Uttar Pradesh, as per media reports.
Currently, BPCL operates three refineries in Mumbai, Kochi, and Bina, Madhya Pradesh.
G Krishnakumar, chairman and managing director of BPCL, has previously stated that the company plans to invest Rs1.7trn over the next five years in various sectors, including Rs750bn in refineries and petrochemicals, Rs80bn in pipeline projects and Rs200bn in marketing.
Additionally, BPCL is allocating Rs250bn to its gas business, Rs100bn for green energy and Rs320bn for upstream production activities, especially in Mozambique and Brazil.
