Saudi Aramco to Tap India Market


New Delhi:  Saudi Arabia-based oil company Saudi Aramco has launched a new Indian venture. This is as part of the oil exporter’s plans to tap the rising demand and invest in the world’s third-biggest consumer.  Dharmendra Pradhan, Petroleum Minister of India, who jointly inaugurated the local unit near here with Saudi Aramco Chief Executive Amin H Nasser, said the move would help pave the way for “a strategic partnership in the hydrocarbon sector” between the two nations.

Saudi Aramco through its subsidiary ARAMCO Asia India (AAI) established its formal business presence in India last year. Aramco is investing in refineries in major markets to lock in customers ahead of its initial public offering next year, and the India business, on top of sales, will look for opportunities to take stakes in refining and petrochemical projects in the country.

Saudi Aramco (officially the Saudi Arabian Oil Company and formerly Arabian-American Oil Company), is based in Dhahran, Saudi Arabia. Its value has been estimated at between USD 8.25 trillion and USD 10 trillion, making it the most valuable company in the world by market capitalisation. Saudi Aramco has both the world’s second largest proven crude oil reserves, at more than 260 billion barrels, and second largest daily oil production.  It operates the world’s largest single hydrocarbon network, the Master Gas System and manages over 100 oil and gas fields in Saudi Arabia, including 288.4 trillion standard cubic feet of natural gas reserves. Ghawar Field, the world’s largest onshore oil field, and the Safaniya Field, the world’s largest offshore oil field, are under its control.

India ranks third in oil consumption with 212.7 million tons in 2016 after USA and China. During the calendar year 2015, India imported 195.1 million tons crude oil and 23.3 million tons refined petroleum products and exported 55 million tons refined petroleum products. India has built surplus world-class refining capacity using imported crude oil for exporting refined petroleum products. Natural gas production was 29.2 billion cubic metres and consumption 50.6 billion cubic meters during the calendar year 2015.