RoydadNaft –  The world’s largest crude oil exporter, Saudi Arabia, and the third biggest importer, India, agreed on Wednesday to enhance cooperation in the energy sector, including in crude oil and petroleum products supply and the construction of two refineries.

The agreement to boost energy cooperation adds to a deal to strengthen the strategic partnerships between the two countries in defense, security, trade, investment, technology, agriculture, culture, health, and education, the Saudi Press Agency reported. 

In energy, India agreed to work with the Kingdom “to enhance the stability of global oil markets and to balance global energy market dynamics,” reads the joint statement released at the end of Indian Prime Minister Narendra Modi’s visit to Saudi Arabia.   

India and Saudi Arabia also “emphasized the need to ensure security of supply for all energy sources in global markets.” 

The two sides stressed the importance of cooperation in the supply of crude oil and derivatives including liquefied petroleum gas (LPG), collaboration in India’s Strategic Reserve Program, joint projects across the refining and petrochemical sectors, including manufacturing and specialized industries, innovative uses of hydrocarbons, electricity, and renewable energy. 

A High-Level Task Force also agreed to “collaborate on establishing two refineries,” according to the joint statement. 

Last month, sources in India told Reuters that Saudi state oil giant Aramco is in discussions to invest in two planned refineries in India.  

State-owned Indian refiners plan to build several new crude processing plants to meet soaring fuel and petrochemicals demand. 

Saudi Arabia, for its part, looks to lock in future term sales for its crude in the top Asian markets, which are set to continue driving global demand growth in the coming years. India has even surpassed China as the single biggest driver of demand growth.

Saudi Arabia is currently India’s third largest crude oil supplier, behind Russia and Iraq. The share of OPEC in India slumped to an all-time low of below 50% of India’s crude oil imports in the 2024-2025 fiscal year, as Russian oil flows to the world’s third-largest crude importer continued to rise and dent the share of the Middle Eastern producers.