Latest news with #SudhiRanjanSen
&w=3840&q=100)
Business Standard
05-05-2025
- Business
- Business Standard
Saudi Arabia's push into Indian refineries stalled over crude oil supply
The nations agreed last month to collaborate on the two plants, as the largest oil exporter seeks to tap a massive market that will help drive global demand growth Bloomberg By Rakesh Sharma, Sudhi Ranjan Sen and Ruchi Bhatia Saudi Arabia's progress in securing investment in two oil refineries in India is being held back by a lack of consensus around crude supply, according to people familiar with the matter. The nations agreed last month to collaborate on the two plants, as the largest oil exporter seeks to tap a massive market that will help drive global demand growth. But the early-stage discussions have stalled as Saudi negotiators push to supply half of the crude needed by the processors at official selling prices that are often above market rates, the people said, declining to be named due to the sensitivity of the talks. India wants Saudi's share of supply to be closer to its desired 20 per cent stake in the ventures — and at a discount to so-called OSPs, the people said. India's oil ministry and the local project partners — Bharat Petroleum Corp. Ltd. and Oil and Natural Gas Corp. — didn't reply to emails seeking comment. Saudi Aramco did not immediately respond to a request for comment. State-owned Saudi Aramco is looking to help set up multibillion-dollar refineries in high-growth nations including China and India, as well as in Southeast Asia, to secure demand for its crude and ensure stability during market volatility, according to its latest annual report. Its weighted average share in overseas processors in 2024 was 35 per cent but it supplied an average 53 per cent of the crude they used, according to the document. The exporter is also looking to claw back market share. Saudi Arabia, the de-facto leader of the OPEC+ producer group, was once India's largest oil supplier but has seen its position in the market decline as discounted imports from Russia increase. A failure to agree on the projects would also be a diplomatic blow. Saudi Crown Prince Mohammed bin Salman — who announced the ventures at a meeting with India's Prime Minister Narendra Modi in Jeddah — had in 2019 pledged $100 billion of investments in India, but just a 10th of that has materialized. A proposed $60 billion refinery planned by Aramco, Abu Dhabi National Oil Co. and India's state firms, didn't materialise due to land acquisition issues. Plans to buy a 20 per cent stake in billionaire Mukesh Ambani's Reliance Industries also fell through. That has increased pressure on both sides to finalise the investments in the new processors — BPCL's proposed refinery and petrochemical complex on the east coast and ONGC's on the west coast in Gujarat, the people said. However, without an agreement on discounted supplies, the Indian refiners see little reason for the Saudis to take a stake, especially as they can easily raise debt from local banks, they said. Saudi Arabia is also proposing to take a stake of as much as 15 per cent in Indian Oil Corp.'s Panipat refinery, one of the people said, a plan which the Indian government plans to study.
Bloomberg
24-04-2025
- Business
- Bloomberg
Kashmir Attack Risks India-Pakistan Flare-Up
The deadly terror attack in Jammu and Kashmir has reignited tensions between India and Pakistan. New Delhi has suspended a decades-old, World-Bank-negotiated water-sharing treaty, in addition to closing its border crossing, expelling military attachés and downgrading diplomatic ties with Islamabad. Gunmen killed at least 26 people, most of them tourists, in one of the deadliest attacks on civilians in years in the South Asian nation. Bloomberg's Sudhi Ranjan Sen reports on "Bloomberg: The China Show." (Source: Bloomberg)
&w=3840&q=100)
Business Standard
23-04-2025
- Business
- Business Standard
Saudi Arabia, India to deepen energy ties, to set up two oil refineries
By Sudhi Ranjan Sen and Sherif Tarek Saudi Arabia and India agreed to deepen energy ties and pursue closer cooperation in areas like tourism and technology as the countries seek to strengthen relations at a time of turbulence for the global economy. An accord was reached to establish two oil refineries in India through a joint venture between the countries, India's Ambassador to Saudi Arabia Suhel Ajaz Khan said in a briefing, without giving more details. The developments come after Saudi Crown Prince Mohammed bin Salman and Indian Prime Minister Narendra Modi met in Jeddah on Tuesday night. India's leader departed shortly after, rather than staying in the kingdom until Wednesday, following one of the worst attacks on civilians in India's northern Jammu and Kashmir region in years. India and Saudi Arabia's leaders met as both countries look to support their economies in the face of wide-ranging US tariff policies that threaten to stunt growth. India is already facing its slowest economic expansion in four years and Saudi Arabia is forecast to come under renewed pressure from subdued oil prices. Deeper ties would stand to bolster stability and energy security for both and follow on years of flirtation between the G-20 nations on partnerships for everything from oil to agriculture and technology. Saudi Crown Prince MBS had in 2019 pledged $100 billion of investments in India, but only about $10 billion of that has materialised. State-owned oil behemoth Saudi Aramco has also long sought entry into India's refining sector with little success. A plan to jointly build a mega complex in western India, for example, hasn't come to fruition due to challenges over land and a proposal for a stake in Reliance Industries Ltd.'s mega refinery in Gujarat failed to fructify on valuation issues. It's unclear if Aramco will be involved in the refineries mentioned by India's envoy to Saudi Arabia on Tuesday. Saudi Arabia, the de-facto leader of the OPEC+ producer group, was once India's largest oil supplier but has seen its share of the market decline as imports from Russia and Iraq increase. Ahead of his visit, Modi had said the two sides are exploring joint projects in refineries and petrochemicals, according to comments he made to Arab News.
