In a significant move to bolster bilateral energy ties, India and Saudi Arabia have agreed to jointly establish two oil refineries in India. This decision was announced following discussions between Indian Prime Minister Narendra Modi and Saudi Crown Prince Mohammed bin Salman in Jeddah, marking a pivotal step in their strategic partnership.
The refineries, each with an anticipated capacity of approximately 9 million tonnes per year, are poised to enhance India’s refining capabilities and energy security. Saudi Aramco, the state-owned oil giant, is reportedly in talks to acquire a 26% equity stake in both projects, potentially investing around ₹18,000 crore. This collaboration aligns with Saudi Arabia’s broader $100 billion investment pledge to India, encompassing sectors such as energy, petrochemicals, infrastructure, and technology.
The establishment of these refineries is part of a comprehensive effort to deepen cooperation between the two nations across various domains, including defense, agriculture, and digital infrastructure. This strategic partnership aims to fortify economic resilience and foster sustainable growth amidst global energy challenges .