Saudi Aramco Eyes the World's Top Oil Markets for “Mega Investment”

Saudi Aramco is planning a “mega investment” for the world’s fastest growing oil market, according to Saudi Arabian oil Co.’s chief executive officer.

 Saudi Arabia’s state-owned oil giant plans to build a fully integrated business in India as its interest in partnering with Indian companies includes a planned project in the India’s west coast’s large refineries.

India and China together are home to four of every 10 people in the world, and the oil industry is pinning its hopes on both countries as demand elsewhere remains weak while production staying high keeps the prices low.

India’s state-owned oiled companies led by Indian Oil Corp. attended the talks held by Saudi Aramco to discuss participation in the 60 million ton a year refinery being constructed in the state of Maharashtra located on India’s west coast, disclosed by Oil Minister Dharmendra Pradhan on Monday at the same event.

 “India has all the signs of a prosperous economy that is on the move. This is a market of investment priority and not a choice anymore,” CEO Amin Nasser said at the Indian Energy Forum by CERAWeek.

 “We have a number of partners with whom we are going to have serious discussions,” he added.

Saudi Aramco opened an office this week in India, this is to market crude oil and liquefied petroleum gas. Providing engineering and technical services in the country was also a goal as Nasser stated the company’s plans for India would cover oil supply, marketing, refining, renewables as well as manufacturing petrochemicals and lubricants.

On record, India’s oil consumption surged 11 percent in 2016 to the most as increasing income levels drove greater use of cars, trucks and motorbikes.

Gazprom and Saudi Aramco Signs MOU

Gazprom, a Russian-owned gas company giant have signed a Memorandum of Understanding for international cooperation in the gas sector along with Saudi Aramco.

The signing ceremony took place as part of Salaman bin Abdulaziz Al Saud, King of Saudi Arabia’s official visit to Russia. Nasser explained the vast opportunities for collaboration is present as a result of the envisaged development and diversification by Saudi Vision 2030.

The companies were said to explore potential cooperation along the whole of the value chain from natural gas exploration, production, transmission and storage to LNG projects.

A number of areas were outlined by Nasser for potential collaboration with Russian companies in industrial localization, downstream petrochemicals, international gas, climate change, trading, technology, and carbon management.

He also emphasized Saudi Aramco’s industrial localization program IKTYA (In-Kingdom Total Value Add) as another area of opportunity for manufacturing companies and Russian services to collaborate with Saudi partners.

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