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Saudi Aramco dumps Indian oil firms
By agencies
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Thursday, 19 May 2005, 19:30 IST
NEW DELHI: Saudi Aramco, one of the worldÂ’s largest oil companies, has rejected Indian participation in its upcoming export-oriented Yanbu refinery on the Red Sea.
Aramco, Saudi Arabia's national oil firm, this week wrote to Indian Oil Corporation and Hindustan Petroleum Corp Ltd that it has not short-listed them for equity participation in the 20 million tonnes refinery project, informed sources said.
The Petroleum Minister, Mani Shankar Aiyar had offered Saudi Aramco a stake in HPCL's 7.5 million tons Vizag refinery or IOC's upcoming 12 million tons Paradip refinery in Orissa to get an Indian firm on board the Yanbu refinery. The barter deal was aimed at deepening cooperation between the two nations in the hydrocarbon sector.
Sources said Saudi Aramco made it clear that it preferred a western partner in the project and did not even shortlist any Indian firm for discussions.
Aramco had offered a minimum of 25 percent and up to 50 percent stake in the 400,000 barrels per day (20 million tons per annum) Yanbu refinery to international investors depending upon their commitment to off take products.
Besides IOC and HPCL, Saudi Aramco was in dialogue with about half a dozen global firms including Chinese and European oil companies for a strategic partnership in the refinery. IOC and HPCL were also given offer documents for the Yanbu refinery stake during Aiyar's visit to Saudi Arabia in March this year.