Saudi revives India investment plans amid shrinking market share

Move aimed at ensuring a major captive market for its crude oil, even as Indian refiners mull reducing the share of expensive Saudi grades sourced under term contracts

Saudi Arabia is reviving plans of investing in grassroot Indian refineries after Indian state-run refiners began evaluating proposals to reduce the share of expensive Saudi grades sourced under term contracts and substitute them with cheaper Russian oil, refining sources and government officials said, and ship tracking data showed.

 

The move by Saudis to consider investments in new Indian refineries, proposed by both Bharat Petroleum and Hindustan Petroleum, is to ensure a captive market for their crude oil, and regain dwindling market share in India — after their proposed investments in Ratnagiri refinery and Reliance Industries soured. Saudi Aramco declined comments