RoydadNaft –  Saudi Aramco, the world’s largest oil exporter, is advancing toward securing a major stake in India’s expanding refining sector.

According to reports from Business Standard and Oilprice.com (dated December 30, 2025), Aramco is expected to acquire a 20% stake in BPCL’s upcoming refinery project in Andhra Pradesh.

Key project details:

•  Location: Near Ramayapatnam port, Nellore district, Andhra Pradesh (east coast of southern India).

•  Capacity: 180,000 to 240,000 barrels per day (bpd), equivalent to 9-12 million tonnes per annum, with a strong focus on petrochemical integration.

•  Total Investment: Approximately $11 billion (around ₹96,000-100,000 crore).

•  Timeline: Land (6,000 acres) already allocated by the Andhra Pradesh government; commercial operations targeted for January 2029.

•  Equity Structure: BPCL plans to retain majority control while diluting 30-40% to partners. This includes ~20% to Saudi Aramco, ~10% to Oil India Ltd (OIL), and 4-5% potentially to banks.

The move aligns with India’s push to expand refining capacity to meet booming demand—India is now the world’s third-largest oil importer and has overtaken China as the primary driver of global oil demand growth. For Saudi Aramco, the investment secures long-term crude sales outlets in a key Asian market.

This development builds on earlier talks reported by Reuters in March 2025, where Aramco was negotiating stakes in both BPCL’s Andhra project and a separate proposed refinery by ONGC in Gujarat. While no official confirmation has been issued by Aramco or BPCL, sources indicate negotiations are progressing, with final details to follow the completion of a detailed feasibility report.