The Indian government is engaging with Saudi Arabia to establish two oil refineries in Gujarat and Andhra Pradesh, each with an annual capacity of 10–15 million tonnes, alongside petrochemical facilities. Discussions follow challenges in acquiring land for a proposed 60-million-tonne refinery in Ratnagiri, Maharashtra.

The Gujarat refinery is expected to involve Oil and Natural Gas Corporation (ONGC) and Saudi Aramco, while Bharat Petroleum Corporation Limited (BPCL) may partner on the Andhra Pradesh project.

These developments coincide with Prime Minister Narendra Modi’s upcoming meeting with Saudi leaders, seeking progress on the Gulf nation’s earlier commitment to invest $100 billion in India, targeting sectors like railways and ports. Saudi Arabia’s interests include securing crude sales to India amid declining shares in the Indian oil basket.

The projects hinge on detailed agreements, including potential revisions to the bilateral investment treaty, with further negotiations underway.

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