Saudi Arabia today said it would double the supply of crude oil to India to around 40 million tonnes (mt) a year, a move that would help India meet the growing needs of its refineries.
The assurance came at a meeting between Minister of Petroleum and Natural Gas Murli Deora and his Saudi Arabian counterpart Ali bin Ibrahim Al-Naimi here today. Deora is part of the delegation accompanying Prime Minister Manmohan Singh on a visit to Saudi Arabia.
He said India looks for doubling of crude oil supply from Saudi Arabia as its three refinery projects at Bhatinda, Bina and Paradip near completion. Naimi assured Deora his country would increase allocation of crude oil for supply to India from about 25.5 mt a year to about 40 mt, according to an official statement.
The petroleum minister also referred to a greater possibility of cooperation and asked the Indian oil Public Sector Undertakings (PSUs) led by Engineers India Ltd (EIL) to jointly open an office in Riyadh. India also evinced interest in sourcing heavier crude from Saudi Arabia and carry out an exchange of technical personnel between the two countries and cooperate on training in skill development in the oil and gas sector.
Singh is on a three-day visit to Saudi Arabia. The two countries have finalised 10 pacts, including an Extradition Treaty and agreements in the economic sphere for signing during the visit.
Conditions ripe for energy ties, says Manmohan
Opening India’s doors to Saudi entrepreneurs, Prime Minister Manmohan Singh today said the “conditions are ripe” for moving beyond a traditional buyer-seller relationship to a comprehensive energy partnership.
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Singh did some hard selling, while addressing the influential Saudi Chambers of Commerce and Industry here. He invited Saudi businessmen to explore investment opportunities in India, particularly in the areas of construction, manufacturing, pharmaceuticals, health, agriculture, energy, telecommunications, tourism and other service sectors, with an aim to substantially bolster bilateral trade, which touched nearly $25 billion in 2008-09.
Indian investments into the kingdom stand at more than $2 billion, covering over 500 joint ventures. Several major Indian companies have already established their presence in Saudi Arabia, Singh said, citing public sector firm Rites, which recently won a contract in the North-South Railways project.
“We deeply value Saudi Arabia’s role as a reliable partner in meeting our energy needs. We believe that conditions are ripe for moving beyond a traditional buyer-seller relationship to a comprehensive energy partnership,” said Singh.
Singh said Indian companies were well-equipped to participate in upstream and downstream oil and gas sector projects in Saudi Arabia. “We should also establish new partnerships in the area of new and renewable energy through sharing of clean technologies and joint collaborations,” he said.
Energy cooperation between the two countries witnessed a massive increase since King Abdullah’s Delhi visit in 2006, with Saudi exports jumping from $500 million that year to $23 billion in 2008, surpassing Iran as the largest supplier of crude oil to India.
Singh said India viewed its economic cooperation with Saudi Arabia in the wider context of its interactions with the entire Gulf region with which the country shares deep and historical ties. “The Gulf countries are our natural partners in every sense of the term. Our businesses should work together across the region, develop cross-country linkages and leverage economies of scale,” he said.