Saudi Aramco signs agreement to develop $44bn refining complex in India

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During the 16th International Energy Forum (IEF) three state-owned companies- Indian Oil Corportaion (IOC), Bharat Petroleum Corporatiomn (BPCL) and Hindustan Petroleum Corporation (HPCL) signed the Memorandum of Understanding (MoU).

Saudi Aramco is investing in projects around the world to tie in customers for oil and integrate its petrochemicals business in major markets.

In a late March stop in NY, the prince signed a memorandum of understanding with Softbank Group build at $200 billion solar power development. "We have seen an inflection point into economic as well as energy demand and the companies have also grown to appreciate the values that Saudi Aramco and the Kingdom bring in terms of reliability and consistency of energy supplies", he added.

Coffman also said Motiva was evaluating increasing the 630,000 barrel-per-day (BPD) Port Arthur refinery's capacity to 1 million or 1.5 million BPD (MMBPD) - the latter making it the largest refinery in the world.

On retailing, he said Saudi Aramco is "very much interested" as it does not want to remain just a manufacturing company.

Saudi Arabia, the world's biggest crude exporter, is preparing for an initial public offering of its state-run producer and leading efforts by OPEC to curb output and eliminate a global glut that spurred oil's decline.

The project, to be built by the companies' Satorp venture, is likely to create 8,000 jobs.

“Investing in India is a key part of our companys global downstream strategy, and another milestone in our growing relationship with India, ” said Saudi Aramco President and CEO Amin H. Nasser, who also noted the opening in 2017 of Aramco Asias New Delhi office with a mandate to expand Saudi Aramcos worldwide portfolio in this key economic growth region.

The deal was signed in the presence of India's oil minister Dharmendra Pradhan and Khalid al-Falih, Saudi Arabia's Minister of Energy, Industry and Mineral Resources.

On the agreement with Total, Saudi Aramco said the move could help solidify a position in the Asian markets in particular. In 2016, the country beat Japan as the world's third-largest oil consumer after the U.S. and China.

India has a refining capacity of 232.066 million tonnes, which exceeded the demand of 194.2 million tonnes in 2016-17 fiscal.

Alongside the deal with Total, two others were signed separately between Aramco and French environmental and waste management groups Veolia and Suez, and Saudi Arabia's Dussur on industrial wastewater treatment. In the last fiscal year, Iraq replaced Saudi Arabia as the largest supplier of crude oil to India.

Nasser said he was not anxious by rising supplies from regional rivals to India.

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