India said to consider investing in Saudi Aramco IPO

India could potentially invest in Saudi Aramco’s initial public offering (IPO) next year, as the world’s third largest oil consumer looks to bolster ties with the Kingdom, Reuters reported on Monday, citing Indian oil minister Dharmendra Pradhan.

Indian state refiners could purchase a stake in Aramco as part of a plan to establish a refining joint venture with the Saudi oil giant, Pradhan said.

“I'm expecting Aramco to be a supplier for a very long time... We discussed the idea with [Saudi energy] minister [Khalid Al] Falih in Houston this year. They (Aramco) are interested in the joint venture,” he said.

Three Indian state refiners are planning to build a new complex with a capacity of 60 million tonnes a year on India’s west coast, and teaming up with a large crude supplier would strengthen the proposal, the minister said.

Aramco is “strongly interested” in the refining project, Pradhan noted, speaking at a press conference in Vienna after meeting OPEC secretary general Mohammad Barkindo.

“We’re talking to our Saudi Arabian colleagues to invite investment from Aramco,” he said, adding that the Indian government wants to build a “global refining industry hub” in the country.

Saudi Aramco plans to raise as much as $100 billion from its IPO next year, expected to be the world’s largest. The oil company plans to list on the Saudi Stock Exchange (Tadawul) as well as one or two other foreign exchanges.

Multiple bourses, including New York, London, Toronto, Singapore, and Hong Kong are competing for the lucrative listing.

India, a key consumer market for oil exporters, imports 86 percent of its crude oil needs from OPEC members, and has repeatedly pressed members of the producer group for price stability.

Following his meeting with Barkindo, Pradhan said on his official Twitter account that he had “raised the issue of Asian Premium still being charged from us by few OPEC countries.”

India will no longer accept the Asian premium on oil imports, the minister said, cited by local news agencies.