NEW DELHI: The world's biggest oil producer, Saudi Aramco, plans to acquire up to 30% stake with a key management role in a giant petrochemicals project in Gujarat, and is negotiating with ONGC Petro additions Ltd (OPaL) for the stake that can pave the way for the behemoth's entry into the Indian oil and gas sector.
The proposed deal, currently at an advanced stage, will be mutually fruitful as Middle-East oil suppliers are looking for closer links in large Asian markets, with the American continents likely to depend less on crude oil imports as domestic shale production and deep-sea oil and gas output pick up.
Aramco also aspires to be a world leader in chemicals and is partnering Dow Chemicals in a $20-billion venture to build the world's biggest petrochemicals complex in the east of the kingdom. It partners Exxon, Total and other firms in refining and chemicals ventures too.
For India, investment in the Rs 19,500-crore project by the Saudi behemoth will come as a shot in the arm for the business climate, which has suffered as the rupee has tumbled, markets have crashed and foreign investors are jittery.
Saudi Aramco, which has 54,000 employees across 77 countries, is held in awe by the global oil industry as it pumps a staggering 9.5 million barrels per day (bpd), or eight times the capacity of Reliance's Jamnagar complex that processes 1.2 million bpd.
Saudi Aramco plans to enter Indian oil sector, eyes 30% stake in OPaL Project
"Saudi Aramco is likely to pick up a significant minority stake between 20% and 30 % in OPaL and will become a strategic investor in the company," a person close to the deal told ET.
This would be the first equity investment by the Saudi major, which virtually dominates the global oil market.
The Gujarat project, likely to be completed by 2014, is being funded with a debt-equity ratio of 60:40.
Source:- economictimes.indiatimes.com
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