Kuwait Petroleum Corporation to soon buy stake in an India refinery

Earlier this month, the world's largest oil company, Saudi Aramco, had entered into an agreement for taking a stake in the refinery

Kuwait Petroleum Corporation is likely to buy a stake in an Indian refinery-cum-petrochemical project that is likely to increase the country's supply by at least 200,000 barrels per day (bpd).

"There will be an announcement to this effect in one or two weeks, as we are planning to buy a stake in a refinery and petrochemical project," said Nabeel Bourisli, chief executive officer of Kuwait Petroleum International (KPI). However, he did not specify the details of the project. 

This comes at a time when India is in talks with countries like Saudi Arabia and Abu Dhabi for giving a stake in its showpiece 60-million-tonne mega-refinery along the country's West Coast. 

Earlier this month, the world’s largest oil company, Saudi Aramco, had entered into an agreement for taking a stake in the said refinery. 

India's three oil markering companies, Indian Oil Corporation (IOC), Bharat Petroleum Corporation (BPCL) and Hindustan Petroleum Corporation (HPCL) signed a memorandum of understanding to set up the mega refinery way back in December 2016. 

The main complex is set to come up at Babulwadi, a small village located in Rajapur Taluk in the Ratnagiri district of Maharashtra, and is expected to be commissioned by 2022. According to the memorandum of understanding, IOC was to have a 50 per cent stake in the refinery complex, while HPCL and BPCL were to hold 25 per cent each.

The refinery is to be present at two locations in Ratnagiri, with the main complex on 14,000 acres in Babulwadi; about 15 km away would be the 1,000-acre storage and port facilities. Babulwadi was selected from among 10 locations the Maharashtra government had suggested.