Saudi Arabia explores investment opportunities in India’s BPCL new refinery

The Kingdom of Saudi Arabia (KSA) is looking for investment opportunities in the Indian Government-backed Bharat Petroleum Corporation Limited’s (BPCL) new refinery project.

This initiative is part of Kingdom’s broader investment strategy in India.

As reported by Moneycontrol, citing sources, BPCL and Saudi Arabia are engaged in ongoing technical discussions, with Saudi Arabia exploring greenfield and strategic petroleum reserve projects in India for potential investments.

On September 29, India’s Petroleum Secretary, Pankaj Jain, met with Saudi energy ministers and Aramco representatives in Riyadh to discuss cooperation in the oil and gas sector.

Secretary @PetroleumMin Shri Pankaj Jain had productive meetings with @aramco leadership, including CEO H.E. Mr. Amin Nasser & President Downstream Mr. Mohammed Al Qahtani, at Dhahran today. They discussed 🇮🇳-🇸🇦 cooperation in Oil & Gas sector & other issues of mutual interests. pic.twitter.com/WpU86a7yXn

— India in Saudi Arabia (@IndianEmbRiyadh) September 29, 2024

In 2019, Saudi Arabia and India signed a memorandum of understanding (MoU), announcing their investment plans in various sectors, including energy, but these investments have not yet been implemented.

BPCL’s new refinery project

BPCL is considering constructing a new 12 million metric tonnes per annum (MMTPA) oil refinery in southern Andhra Pradesh or northern Uttar Pradesh, according to an industry source in July, Reuters reported.

The project is expected to cost around Rs 50,000 crore. 

BPCL operates three refineries in Mumbai, Kochi, and Bina, with a combined annual refining capacity of approximately 36 MMTPA.