International News

Saudi Arabia to Build $44 Billion Refinery in Western India

India and Saudi Arabia on Wednesday signed an agreement to set up a crude-oil refinery with a capacity to process 1.2 million barrels a day in the western Indian state of Maharashtra.
State-run Saudi Aramco will hold a 50% stake in the refinery while ownership of the remaining half will be shared by three Indian state-run refiners and retailers— Indian Oil Corp EQIOC -1.70% Ltd., Hindustan Petroleum Corp EQHINDPETRO -2.25% Ltd. and Bharat Petroleum Corp EQBPCL -1.99% Ltd.
Saudi oil minister Khalid al-Falih, who announced the deal along with Indian oil minister Dharmendra Pradhan, didn’t disclose the investment Saudi Aramco will be making in the project, which will cost $44 billion to build.
Global oil producers are trying to establish a footprint in India, which is seen as an increasingly important engine of global demand as consumption in China slows.
Mr. Falih said Saudi Arabia has committed to supply half the crude oil to be used in the refinery and that it could bring in another international partner to the joint venture, called Ratnagiri Refinery & Petrochemicals Ltd.