RIYADH: Saudi Arabian Oil Co. is engaged in investment discussions with Indian companies, revealed a top official.
Speaking at the India Energy Week in Goa, Faisal Faqeer, Saudi Aramco’s senior vice president of liquids to chemicals development downstream, revealed that the energy giant is expected to announce some major deals with firms from the country.
“Hopefully, we will see some announcements soon on investment in Indian companies,” said Faqeer, as reported by Reuters.
The Saudi energy giant has been boosting its assets in refining and petrochemicals across Asia to secure new markets for its crude.
The Kingdom is pumping around 9 million barrels per day of oil, well below its roughly 12 million bpd existing capacity, after it cut production as part of an agreement with the Organization of the Petroleum Exporting Countries and its allies known as OPEC+.
In September 2023, during the India-Saudi Arabia Strategic Partnership Council, both sides agreed to diversify their hydrocarbons relationship into a comprehensive energy partnership.
During the meeting, both countries also agreed to set up a joint task force to help identify and channel the $100 billion investment promised by the Saudi side, half of which is for the west coast refinery project.
On Feb.6, Aramco announced that it had kept the March price for its flagship Arab Light crude to Asian customers unchanged from the previous month at a more than two-year low.
The oil company has set its official selling price for Arab Light to Asia for March at $1.50 a barrel over the Oman/Dubai average. The cost is considered a barometer for how the Kingdom sees the demand outlook.
Aramco made its biggest cut on the official selling price in 13 months for February cargoes to a 27-month low, according to a statement.
The March expense was lower than market expectations, which forecasted the company to raise the OSP by about 55 cents following the improved structure and supply disruption concerns amid the ongoing Israel-Hamas war.
The energy giant also left the March cost for Arab Heavy crude to Asia at the prior month’s level. It slightly cut prices for Arab Extra Light and Arab Medium by $0.05 and $0.20 a barrel, respectively.
Earlier this month, Aramco raised the official selling cost for propane and butane in February by $10 a tonne from the previous month.
Following the price hike, Aramco’s February OSP for propane stands at $630 per tonne, while the price for butane has been set at $640 per tonne.
