India-Saudi Arabia Collaboration on Oil Refineries and Energy Stability

India and Saudi Arabia have reinforced their commitment to enhancing global oil market stability through significant collaborations, as outlined in a recent joint statement.

Key Agreements

• Establishment of Refineries:
  • Decision to establish two new refineries in India.
  • Part of Saudi Arabia's commitment to invest $100 billion in India across various sectors.
• Oil Market Stability:
  • Enhanced cooperation in crude oil and derivatives supply, such as LPG.
  • Saudi crude constitutes 14.3% of India's total imports; Saudi is the third biggest LPG supplier to India.

Strategic Initiatives

• Refinery Project Details:
  • Saudi Aramco's interest in the West Coast Refinery in Maharashtra, initially a $44 billion project for 60 MMTPA capacity.
  • Consideration of smaller refineries with approximately 20 MMTPA capacity.
• Joint High-Level Task Force:
  • Focus on energy, petrochemicals, infrastructure, technology, and digital infrastructure.
  • Negotiations on the Bilateral Investment Treaty and progress in taxation.

Development Areas

• Supply Chain Development: Collaboration on supply chains and energy sector projects.
• Strategic Reserve Program: Involvement in India’s Strategic Reserve Program.
• Green Hydrogen Initiative:
  • Joint stimulation of demand and development of hydrogen transport and storage technologies.
• Labour and Human Resources: Exploration of collaboration opportunities, noting the presence of 2.7 million Indian nationals in Saudi Arabia.

Memorandums of Understanding (MoUs)

• On space activities for peaceful purposes between space agencies.
• On health cooperation between health ministries.
• On inward foreign surface parcel between postal departments.
• On anti-doping and prevention between anti-doping bodies.