Saudi Arabia eyes investment in BPCL’s new refinery project

Saudi Arabia is in discussions to invest in a new refinery project being developed by Bharat Petroleum Corporation Ltd (BPCL), marking part of the kingdom’s larger USD100 billion investment strategy for India. The initiative aligns with Saudi Arabia’s ambitions to explore greenfield projects and strategic petroleum reserves in India, according to a senior government official.

BPCL is in the preliminary stages of planning the new refinery, aimed at meeting India’s growing energy demand. The location for the project is yet to be finalised, and technical discussions between BPCL and Saudi officials are ongoing. A response from BPCL regarding the developments was not available at the time of publication.

In 2019, Saudi Arabia signed a Memorandum of Understanding (MoU) with India, outlining a USD100 billion investment plan across sectors including agriculture, infrastructure, manufacturing, and energy, though the investment has yet to fully materialise.

India’s Petroleum Secretary Pankaj Jain met with Saudi energy ministers and officials from Saudi Aramco in September, focusing on cooperation in the oil and gas sector. With India pushing to expand its refining capacity to meet rising domestic demand, this investment in new refineries could play a crucial role.

BPCL is reportedly considering a 12 million metric tonne per annum (MMTPA) refinery, with an estimated cost of INR50,000 crore (USD5.95 billion). While the timeline and exact location of the project remain undecided, media reports suggest that Andhra Pradesh and Uttar Pradesh are being considered as potential sites.

BPCL operates refineries in Mumbai, Kochi, and Bina, and has announced plans to invest INR1.7 lakh crore (USD20.23 billion) over the next five years across core areas such as oil refining, petrochemicals, and clean energy.