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What Saudi Aramco's cut in capex could mean for mega deals in India

The oil producer is a JV partner with Indian state-run oil refiners to set up a mega refinery, and also plans to pick a stake in RIL's O2C business

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In August 2019, RIL announced Saudi Aramco’s intent to invest in RIL’s oil to chemicals (O2C) business, which was expected to fetch $15 Billion for a 20 per cent stake.

Amritha Pillay Mumbai

3 min read Last Updated : Aug 25 2020 | 7:56 PM IST

Energy giant Saudi Aramco, according to a recent Bloomberg news report, has suspended a $10-billion China oil refinery venture as it looks to cut down on spending. This, could in turn raise doubts on its international deals, including India.

A Reuters report earlier this month, said Aramco's capital spending plan for 2021 will be "significantly lower than previous guidance", Amin Nasser chief executive officer for the company said on an analyst and investor call after the company's quarterly results.

Analysts at Credit Suisse do not see the reduction in capital expenditure as good news for planned acquisitions. “The Financial Times (August 12)

Topics : Saudi Aramco energy sector Credit Suisse Reliance Industries Oil refinery Bharat Petroleum Corporation Indian Oil

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