Saudi Arabia is reviving plans of investing in grassroot Indian refineries after Indian state-run refiners began evaluating proposals to reduce the share of expensive Saudi grades sourced under term contracts and substitute them with cheaper Russian oil, refining sources and government officials said, and ship tracking data showed.
The move by Saudis to consider investments in new Indian refineries, proposed by both Bharat Petroleum and Hindustan Petroleum, is to ensure a captive market for their crude oil, and regain dwindling market share in India - after their proposed investments in Ratnagiri refinery and Reliance Industries soured.
Saudi Aramco declined comments on the story in an email.
Indian state-run refiners may cut volumes under existing term contracts by at least 10 per cent, with the level of reductions differing across companies based on their refinery configurations, two senior refining sources said.
New term contracts with Saudi Arabia will start next April for FY26—shipments in FY25 between April and October averaged 592,000 bpd.
That places the cuts to average at least 60,000 bpd.
Simultaneously, Indian state-run refiners led by Indian Oil are also in talks with Russian state oil companies led by Rosneft for term contracts.
Indian Oil's term contract with Rosneft for around 490,000 bpd expired in March and is up for renewal, industry officials said.
While the Saudi contracts comprise a fixed, committed volume and optional quantities on a financial year basis, Iraqi contracts are on a calendar year term.
This story is from the November 02, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the November 02, 2024 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How AI is Disrupting the Literary World
This summer, Ayad Akhtar was struggling with the final scene of McNeal, his knotty and disorienting play about a Nobel Prize-winning author who uses artificial intelligence to write a novel.
Dark store surge set to spur realty demand
Quick commerce (qcom) firms are poised to impact India's real estate landscape as they expand their dark store networks to meet the growing demand.
The Bibek I knew
It was the early 2000s when I was setting up an economics research practice.
Saudi revives India investment plans amid shrinking mkt share
Move aimed at ensuring a major captive market for its crude oil, even as Indian refiners mull reducing the share of expensive Saudi grades sourced under term contracts
Tech, threats, territories - navigating industry growth in the new world order
As I step into my role as president of Nasscom, I view the next five years as a critical period, shaped by the intersection of three forces: Technology, threats, and territories.
STARS AND STYLE
The two biggest ever stars of Indian movies have followed contrasting styles as brands
Overhaul of HVLDE norms on cards
Market regulator Sebi has proposed an overhaul to the framework governing high-value listed debt entities (HVLDEs) in a bid to reduce the compliance burden.
Sebi moots changes to ERP framework
Revision to allow ERPs to rate unlisted securities
Testing the Midwestern assumption
Every now and then, a moment comes when the assumptions underlying a nation's politics are completely overturned.
From alienation to acceptance
A third of the way into Matthew Rankin's Universal Language, one stops wanting to know the film's secret and begins swimming in its mystery instead.