Saudi Aramco inked two deals yesterday totaling a whopping $49 billion as the state-run oil company ramps up to a planned public offering.
The Wall Street Journal and Reuters report that India and Saudi Arabia on Wednesday signed an agreement to set up a “mega” crude-oil refinery with a capacity to process 1.2 million barrels a day, integrated with petrochemical facilities with a total capacity of 18 million tons per year in the western Indian state of Maharashtra.
The cost is estimated at $44 billion.
According to the Reuters report, Saudi Aramco will supply at least 50 percent of the crude to be processed at the planned refinery.
“Large as this project may be, it does not by itself satisfy our desire to invest in India…We see India as a priority for investments and for our crude supplies, Saudi Energy Minister Khalid Al-Falih said, Reuters reports.
In another deal, Saudi Aramco and French oil major Total SA reportedly are in plans to build a $5 billion petrochemical complex near their refinery in Jubail to tap growing demand in the Middle East and Asia, according to Bloomberg.
The preliminary deal for the construction of a 1.5 million tons a year steam cracker and petrochemicals units was announced as Crown Prince Mohammed bin Salman wraps up a visit to France.