The Indian national government are endeavoring to cement further ties with Saudi Arabia. In order to boost the two countries bond, investments and supply are being discussed.
Saudi Aramco has been offered, by the Indian government, a 10% stake in the Paradip refinery. Construction of the plant began in 2007 and is scheduled for completion in 2011. Indian Oil Corporation are majority owners of the facility which will produce 300 000 bpd. Projected costs, at the moment stand at approximately US$ 5.80 billion. Saudi Aramco have been offered the 10% share for US$ 650 million.
It has also been reported that the Indian government have offered Saudi Basis Industries Corporation shares in petrochemical projects being developed by Oil and Natural Gas Corporation.
India currently imports approximately 20% of its oil needs from Saudi Arabia, and since 2003, two way trade between the two countries has increased from US$ 5 billion /y to nearly US$ 25 billion. However, most of this growth has come from Saudi Arabia’s oil exports to India.
Saudi Arabia has now agreed to nearly double its crude exports to the energy hungry India. At the moment, India imports approximately 500 000 bpd from Saudi Arabia and will increase this to 40 million tpy.
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