Aramco may partner IOC for crude storage

Saudi Aramco is considering partnering IOC for building strategic crude oil storage in India, but does not appear keen on equity in IOC's Paradip refinery.

Abdallah S Jum'ah, president and chief executive officer of Saudi Aramco, met IOC chairman M S Ramachandran to discuss joint proposals in India and Saudi Arabia.

"Saudi Aramco has said it will consider participating in building the five million tonne storage capacity for strategic crude in Vizag and Mangalore," Ramachandran said.

On partnering IOC in the 15 million tonne per annum Paradip refinery in Orissa, Jum'ah said: "No. We did not discuss equity partnership (in Paradip refinery)."

"Proposals of mutual co-operation were discussed, but there was nothing on Paradip," he added.

IOC has formed a special purpose vehicle to set up the strategic oil storage facilities, which is likely to be built at a cost of around Rs 1,650 crore. Crude inventory will be roughly worth Rs 5,000 crore.