With Energy Security And Investments In Sight, PM Modi May Make Brief Stopover In Saudi Arabia After UN Summit

Amid reports that Saudi Aramco is set to announce its IPO next month, which would be the world's largest-ever listing, India would be looking to expedite the $44 billion West Coast refinery project in Maharashtra, in which Saudi Aramco is to hold considerable stake, as well Reliance Industries Ltd $15 billion deal with the Saudi oil giant to sell 20 per cent stake in its flagship chemicals and refining business.

Despite the 14 September drone attack on the Abqaiq oil refinery and Khurais oil field, that knocked out half of Saudi Arabia's total output and 5 per cent of global oil supply, Riyadh has assured India there will be no disruption in oil supplies.

Global majors Saudi Aramco and Abu Dhabi National Oil Company (Adnoc) had formed a joint venture with Indian state-run oil marketing companies - Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) - to hold 50 per cent stake in the Ratnagiri Refinery and Petrochemicals (RRPCL), known as the West Coast refinery project.

However, issues of land acquisition have held up progress of the project, which are likely to be sorted out.

In August, Reliance had announced its plans to sell 20 per cent stake to Aramco in its refining and petrochemicals business for $15 billion, as part of a plan to reduce its massive debt. According to the terms of the deal, Saudi Aramco will also supply 500,000 barrels per day of crude oil to RIL's twin refineries in Jamnagar.

The two deals are likely to be firmed up soon, and likely at Prime Minister Narendra Modi's personal intervention. He could make a brief stopover at Riyadh on his way back from the United Nations General Assembly to finalise the deals, which would be a big boost to India-Saudi ties.

Saudi Arabia is the second largest supplier of crude and liquefied petroleum gas (LPG) to India. In 2017-18, India's crude oil imports from Saudi Arabia stood at 36.8 million tonnes, accounting for 16.7 per cent of its total imports.

India is also keen to not allow any let up in its ties with Saudi Arabia, which has had a longstanding and close relationship with Pakistan. The Pakistani Prime Minister Imran Khan made a two-day stopover at Riyadh on way to New York for the UNGA.

(with IANS inputs)