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Saudi Aramco to acquire 30 per cent stake in Indian petrochemicals project

28th August 2013

Saudi oil giant is looking to acquire stake in ONGC’s project in Gujarat

The company is likely to pick up a 20-30 per cent stake in OPaL and will become strategic adviser for the Gajurat project.

A Saudi based oil giant may expand towards the Asian market with a 30 per cent stake in an Indian petrochemicals project.

Saudi Aramco is looking to expand into the Indian oil and gas sector by investing in ONGC’s (OPaL) USD 29bn project in Gujarat, according to sources at the Economic Times.

 

The sources said that the company is likely to pick up a 20-30 per cent stake in OPaL and will become a strategic adviser for the company as well as the Gajurat project.

 

Aramco is aspiring to be a world leader in chemicals and is partnering with Dow Chemicals in a USD 20bn petrochemicals complex in the east of the Saudi kingdom. It also partners with many other global companies for such projects including Exxon and Total.

 

Aramco also produces 9.5 million barrels per day (bpd), eight times the capacity of Indian firm Reliance’s Jamnagar complex, which produces only 1.2 million bpd. 

 

This Indian project would be the first equity investment from the Saudi giant, who dominates the global oil market.

According to the Wall Street Journal, the Indian government has said their crude oil imports in 2012 rose by 5.2 per cent to 172.11 million metric tons, or 3.45 million bpd, up from 163.59 million tons, or 3.29 million bpd due to global oil costs and increased local demand.

 

According to EIA figures, India is the world’s 4th biggest oil consumer behind China, US and Russia.