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ADNOC to Purchase Indian Refinery, Petrochem Stake

ADNOC to Purchase Indian Refinery, Petrochem StakeADNOC to Purchase Indian Refinery, Petrochem Stake

Abu Dhabi National Oil Company will sign an agreement with Saudi Aramco and Indian companies on Monday for an up to 25% stake in a planned $44 billion refinery and petrochemical project in India, a government source said.

Major oil producers are targeting Asia where fuel demand is growing, as a stable outlet for their oil, Reuters reported.

India, the world's third biggest oil importer and consumer, aims to expand its refining capacity by 77% to 8.8 million barrel per day by 2030.

"The deal will be signed on Monday," said a government source. ADNOC plans to invest $45 billion over the next five years to expand its refining and petrochemical operations.

Saudi Aramco in April signed a deal with Indian state refiners for a 50% stake in the planned 1.2 million barrels per day project to be built on the country's west coast.

Indian Oil Corp, the country's top refiner, owns a 25% stake in the project, while Hindustan Petroleum Corp. and Bharat Petroleum Corp have a 12.5% stake each.

Aramco had said in April it may introduce a strategic partner to share its 50% stake. This would be ADNOC's second investment in Indian oil and gas sectors after a deal to lease part of Indian oil storage in southern India.

 

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