Minister: India Seeks 'Reasonable' Oil Price From Saudi Arabia
NEW DELHI, Feb 23 (Reuters) - India is seeking a reasonable price for crude oil from Saudi Arabia, Oil Minister Dharmendra Pradhan said on Friday, in a move that could help Riyadh regain top spot in supplying the world's third largest oil consumer.
"Some instrument can be developed so that the pricing is suitable for both of us," Pradhan said after a meeting with Saudi Arabian counterpart Khalid al-Falih.
"We must get a reasonable price for crude oil and LPG (liquefied petroleum gas)," he said.
Iraq surpassed Saudi Arabia in 2017 as the top supplier to India.
Asia has become the biggest and most important buyer of crude oil from Saudi Aramco and the oil company wants to secure Asian markets for the long term as it faces competition from suppliers such as Russia and the United States.
In a bid to woo Saudi Arabian investment, India has offered Saudi Arabia a stake in the second phase of the country's strategic oil reserves storage facility, Pradhan said.
India is building a six million tonne strategic oil reserve. It already has a 5 million tonne strategic reserved stored at three locations.
"The way we have done an arrangement with ADNOC (Abu Dhabi National Oil Company) for storage facility, the same way we are discussing with Aramco (Saudi Aramco)," Pradhan said.
India and Saudi Arabia also discussed investment opportunities in a proposed oil refinery on the west coast of India with a capacity of 1.2 million barrels per day and a petrochemicals project in the southern city of Kakinada, Pradhan said.
"They are more than interested, we are discussing the nitty gritty of the projects " he said.
Saudi Aramco, world's biggest oil producer, is investing in refineries abroad to help lock in demand for its crude and expand its market share ahead of its planned initial public offering.
Last year Saudi Arabia pledged billions of dollars of investment in projects in Indonesia and Malaysia as part of long-term oil supply deals.
(Reporting by Nidhi Verma; editing by Christian Schmollinger and Jason Neely)
WHAT DO YOU THINK?
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.
- Weatherford CEO's Rebound Plan Relies On Getting Smaller
- Iran Says Oil Market Is Too Tight For US Zero Exports Target
- China's Squeezed 'Teapots' Eye Petchem Path To Riches
- Baker Hughes: US Drillers Add Oil Rigs For Second Week In Three
- Venezuela Hands China More Oil Presence, But No Mention Of New Funds
- ExxonMobil Racks Up Discoveries in Guyana Block Eyed by Chevron
- Oil Market Sentiment Has Improved Significantly
- EU, US Eye Collaboration on Nuclear Materials
- USA Driving Activity to Increase to All-Time Highs
- TC Energy to Sell Prince Rupert Gas Pipeline Project to First Nation
- EU Electricity Export to Ukraine Up 94 Percent in Two Years
- China Coal Output Falls for First Time since Government Ordered More
- BP Pulse Buys One of Europe's Largest Truck Stops
- UK CCUS Plans Outdated: Think Tank
- North America Enters Rig Loss Streak
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- EIA Drops 2024 Henry Hub Gas Price Forecast
- EIA and Standard Chartered Offer Up Latest Oil Price Predictions
- Red Sea Region Sees Another Watershed Incident
- Chevron Oil Project in Kazakhstan to Cost $48.5B
- OPEC Voices Encouragement after IEA Affirms Support for Oil Security
- Biden Govt Bares Strategy for Freight Charging, Hydrogen Fueling Infra
- Ukraine Hits Third Russian Refinery In Escalating Drone Strikes
- Rystad Looks at the Buzz Around White Hydrogen
- VIDEO: Missile Attack Kills Crew Transiting Gulf of Aden
- Norway Regulator Blasts Proposal to Halt New Oil and Gas Permits
- Chinese Mega Company Makes Major Oilfield Discovery
- What Is the Biggest Risk to Offshore Oil and Gas Personnel in 2024?
- Is Peak Oil Demand Close?
- Vessel Sinks in Red Sea After Missile Strike
- JP Morgan, Standard Chartered Reveal Latest Oil Price Forecasts
- Exxon Rights in Stabroek Do Not Apply to Hess Merger with Chevron: Hess
- Rystad Forecasts Net Production of Top Permian Producers in 2024
- Analysts Reveal Latest Oil Price Outlook Following OPEC+ Cut Extension