Saudi Aramco said to expand in India with new unit

Saudi Arabian Oil Co. (Saudi Aramco) will open a subsidiary in India next week as the world's top oil exporter seeks to tap demand and invest in the world's third-largest crude consumer, Reuters reported on Tuesday citing unnamed sources.

Aramco is investing in refineries in major markets to attract investors ahead of an initial public offering (IPO) next year.

The Indian unit will look for opportunities to acquire stakes in refining and petrochemical projects in the country.

Saudi Arabia is competing with Iraq for India’s top oil supplier, after Baghdad replaced Riyadh at the forefront in August for the fifth consecutive month, according to reports by Reuters.

Aramco's chief executive officer, Amin Nasser, will open Aramco Asia India Unit during his visit to New Delhi next week for the HIS CERA week, which begins on Sunday and will be also attended by OPEC Secretary-General, Mohamed Barkindo.

One source said Nasser will also meet Indian prime minister, Narendra Modi, on Monday as part of a delegation to discuss investment in the oil and gas sector.

Saudi Aramco or the Indian Prime Minister's Office could not be reached for comment.

Major oil producers, who have lost market share as oil production in the United States has increased, benefit from increased demand for fuel in Asia.

Earlier this year, Saudi Arabia pledged to invest billions of dollars in projects in Indonesia and Malaysia to secure long-term oil supply agreements.

Indian oil minister, Dharmendra Pradhan, said earlier that Aramco wanted to hold exclusive talks on buying a stake in a planned 1.2 million barrels per day (bpd) refinery on India's west coast.